‘Corporate earnings & inflation data key factors to drive markets’

New Delhi: Quarterly earnings of corporates, trading activity of foreign investors and inflation data are the key factors that are expected to drive the momentum in the equity markets this week, analysts said.

Moreover, markets would also focus on movement in crude oil prices amid geopolitical tensions, experts added.

“In the coming week, the market’s direction will largely hinge on corporate earnings, with major companies like Reliance Industries, Infosys, HDFC Bank, Axis Bank, and HCL Technologies set to release their results, among others,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

From the macroeconomic front, investors will keep an eye on the CPI (consumer price index-based inflation) and WPI (wholesale price index-based) inflation data for September, scheduled to be announced on Monday.

Investors will also closely track updates on geopolitical tensions, particularly their impact on crude oil prices, and foreign fund flows. Key domestic economic data, including CPI and WPI inflation, are also scheduled for release, which could influence market sentiment, Mishra added.

Last week, the BSE benchmark fell 307.09 points, or 0.37 per cent to close at 81,381.36, while NSE Nifty slipped 50.35 points or 0.20 per cent to settle at 24,964.25.

The markets ended the week marginally lower, marking a pause after a sharp decline.

The week started on a downbeat note due to continued selling pressure from foreign investors, but selective strength in heavyweight stocks helped limit the losses in the later sessions, he said.

Foreign investors turned net sellers in October, withdrawing shares worth Rs 58,711 crore in the month so far owing to escalating conflict between Israel and Iran, a sharp rise in crude oil prices, and the strong performance of the Chinese market.