Stock market this week: After the end of a volatile week, stock market is gearing up for a truncated week due to stock market holidays falling on Thursday and Friday. However, the week will begin with quarterly result announcement by IT major TCS (Tata Consultancy Services) followed by Infosys results. Apart from this, US inflation and retail sales date for March is also expected whereas Covid cases in China and geopolitical tension like Russia-Ukraine war and Sri Lanka crisis would also impact the global equity markets.
Speaking on major triggers that will dictate stock market next week; Santosh Meena, Head of Research, Swastika Investmart Ltd said, “A volatile week concluded on a positive note however mid-cap and small-cap stocks witnessed stellar gain and this trend is likely to continue this week. We will have a truncated week due to holidays on Thursday and Friday on the occasion of Dr. Baba Saheb Ambedkar Jayanti and Good Friday respectively. The earnings session will kick off with the results of major IT names TCS and Infosys, which are scheduled on the 11th and 13th of April respectively. Apart from earnings, global cues, crude oil prices, and FIIs’ flow will play an important role in the direction of the market.”
Here we list out top 5 triggers that will dictate stock market next week:
1] Company results: Asking Dalal Street observers and investors to keep an eye on company results next week; Divam Sharma, Founder at Green Portfolio said, “There will be announcements of results of TCS and Infosys will be watched by the markets. It will be interesting to see the commentary of the management of these companies considering the geopolitical developments. The outlook on order flows and cost pressures will be closely monitored along with the revenue performance.” Rakesh Jhunjhunwala-backed Delta Corp results would also come on 11th April 2022. Anand Rathi Wealth, Hathway Cable would also announce its Q4 number on 11th and 12th April respectively.
2] US inflation data: On the economic data front, the US will release inflation and retail sales figures for March. The estimates suggest that CPI in the US could swell to as high as 8.41% for March, which could work as an important trigger for the global equity markets, including India.
3] Russia-Ukraine war: To begin with the geopolitical developments, the US and Europe are planning new sanctions against Russia, which can further fuel tensions and even prolong the rise of global inflationary pressures, putting global equity market under selloff heat.
4] Focus on small-cap and mid-cap segment: As April month has remained the month of small-capa nd midcap stocks and the segment emerging bulls’ favourite in first week of April, the trend is expected to continue next week as well. “Due to result season beginning small-cap and midcap IT stocks are expected to remain in focus of bulls but pharma, hospitality and auto stocks will also attract attention of market participants this week,” said Avinash Gorakshkar, Head of Research at Profitmart securities.
5] Covid cases in China: Focus also remains on China’s worsening Covid outbreaks as it could dent the growth outlook in the world’s second-largest economy. However, China’s government has hinted at further support measures to deal with the crisis and stimulate growth.
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