Q2 earnings, macro data to drive markets this week, say analysts

New Delhi: Quarterly earnings from IT majors Tata Consultancy Services (TCS), Infosys, macroeconomic data announcements, global trends and trading activity of foreign investors would guide the movement in the equity market this week, analysts said.

Movement of global oil benchmark Brent crude and the rupee will also influence trading in the markets.

“All eyes will be on the beginning of corporate performance for the second quarter of the current fiscal year. TCS is slated to unveil its Q2 results on October 11, with HCL Technologies and Infosys following suit on October 12.

“Market participants will be keeping an eye on the movement of rupee against the dollar and crude oil prices. Investments by Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) will also be monitored,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

On the macroeconomic front, there are important data announcements scheduled. On October 12 is the release of industrial production and manufacturing production data for August, he said. Simultaneously, inflation rate for September will be announced, providing insights into the country’s economic health, Gour added.

Lastly, Wholesale Price Index (WPI) data for September is slated for release on October 13, 2023, he said. “We expect the market to take cues from the upcoming earnings season,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said.

Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said, global and domestic economic data, FII/DII trading activity, upcoming Q2 earnings season, crude oil inventories, movement of rupee against the dollar and treasury bond yields will drive the market in the coming days.

Markets will take further cues from major global events such as Eurozone inflation data, US initial jobless claims and FOMC (Federal Open Market Committee) minutes, he said.