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Earnings, Global Trends, Foreign Fund Trading Activity Key Triggers For Market This Week: Analysts

The domestic equity markets will be driven by ongoing quarterly earnings announcements and global factors this week, according to analysts.

Besides, the trading activity of foreign portfolio investors would also be tracked.

“In the domestic market, the March 2023 quarterly earnings season and Karnataka assembly elections will be in focus. Asian Paints Ltd., Cipla Ltd., Eicher Motors Ltd., Larsen & Toubro Ltd. and UPL Ltd. Q4 earnings are in the pipeline for this week,” said Pravesh Gour, senior technical analyst at Swastika Investmart Ltd.

The movement of the rupee against the dollar and crude oil prices will also remain in focus, Gour said.

“Global markets are in a brittle mode because everyone is eyeing US regional banking systems (small banks), which are in trouble,” he said.

Also, Apollo Tyres Ltd., Indian Overseas Bank and Tata Motors Ltd. would announce their earnings this week.

“This week, participants will be eyeing macroeconomic data viz. IIP and CPI for cues on May 12. Besides, the U.S. inflation, which is scheduled on May 10, will also be on their radar,” Ajit Mishra, vice president–technical research at Religare Broking Ltd., said.

Last week, the 30-share BSE benchmark dipped 58.15 points, or 0.09%.

Markets declined more than 1% on Friday dragged down by a heavy sell-off in index major HDFC twins. Both HDFC Bank and HDFC fell sharply amid reports that the merged HDFC entity could see significant fund outflow.

According to market analysts, the domestic market continued to be positive at the beginning of the last week, aided by strong FII inflow and favourable domestic macroeconomic data.

“India outperformed most markets in April. The principal reason for the outperformance is the sustained buying by FPIs. During the last seven trading sessions i.e. from 26th April to 5th May, FPIs have bought equity worth Rs 11,700 crore,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

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