Stock Market forecast: Q1 Results, US-India trade talks, FIIs to drive market

New Delhi: The stock market investors will keep a close eye on the first quarter results of several bluechip companies, likely outcome of ongoing India-US trade talks, and June inflation data for market cues.

The analysts are also of the view that the global market trends and trading activity of foreign investors would also impact the market sentiments.

“While global cues will continue to dictate trends in domestic equities, investors’ focus will be on the likely outcome of India’s ongoing trade negotiations with the US. Overall sentiments continue in a dilemma as the wait for a trade deal with the US continues. Traders are not confident about taking any major positive bets in this uncertain environment.

“In contrast, first-quarter corporate earnings will be keenly watched over the next few weeks…,” SimranJeet Singh Bhatia, Senior Equity Research Analyst at financial services provider Almondz Global, was quoted by PTI as saying.

Last week, the BSE benchmark Sensex dropped 932.42 points or 1.11 per cent, and the NSE Nifty tanked 311.15 points or 1.22 per cent.

“Looking ahead, the earnings season will be in full focus. A packed calendar includes results from HCL Tech, Tech Mahindra, Axis Bank, Wipro, JSW Steel, among others. On the macroeconomic front, participants will closely track the WPI and CPI inflation data scheduled for July 14 for further cues on the economy,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

MIshra was of the view that selling/buying activities of FII and crude oil prices will also be closely watched by the traders. He also pointed out some other factors like economic data releases such as US inflation and China’s GDP numbers that could affect the market movement.

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