Stock market outlook for the week: Inflation, corporate earnings and more in focus; key factors to look out for
Indian stock markets are likely to remain under close watch this week as investors eye key inflation data, corporate earnings, and international developments. Activity by foreign investors is also expected to influence equity trends. Ajit Mishra, SVP, Research at Religare Broking Ltd, said, “This week will be crucial, with several key macroeconomic data releases scheduled. On the domestic front, focus will be on India’s CPI inflation and WPI inflation data, which will provide insights into the inflation trajectory and policy outlook.”“On the earnings front, quarterly results from prominent companies such as ONGC, Bajaj Finserv, Asian Paints, Tata Steel and Oil India will be closely tracked for sectoral cues,” Mishra told PTI. Investors are also keeping an eye on the rupee-dollar movement and Brent crude prices, both of which could significantly affect market sentiment. Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, added, “A slew of key domestic and global macroeconomic factors are expected to shape market sentiment in the week. On the domestic front, the upcoming release of October’s Consumer Price Index (CPI) inflation data will be closely watched, as it is likely to offer investors clearer insights into the future path of interest rates.” On the global stage, the ongoing US government shutdown has delayed the release of important economic data, making it harder for investors and policymakers to gauge the health of the US economy, Ponmudi noted. Last week, which was shortened due to holidays, saw markets retreat. The BSE benchmark dropped 722.43 points, or 0.86%, while the NSE Nifty fell 229.8 points, or 0.89%. Looking ahead, Vinod Nair, Head of Research at Geojit Investments Limited, said, “Going ahead, market direction will depend on upcoming domestic inflation data, FII flows, developments related to the US government shutdown, and progress in trade negotiations involving the US, India, and China.”
