Q1 Earnings, Macro Data to Drive Markets This Week: Analysts

New Delhi: Quarterly earnings from frontline companies such as RIL, Wipro and HDFC Bank and macroeconomic data would be the major triggers for the domestic equity markets this week, say analysts. Investors will also monitor trade-related developments, as well movement in the rupee and crude oil prices, they added.

"Trade disputes, muted expectation from quarterly results and premium valuation will lead to under-performance in the near term. For the week ahead, market will start to react on the actual performance of Q1 FY20 result which seems subdued," said Vinod Nair, Head of Research, Geojit Financial Services.

Infosys counter may see some movement on Monday after the IT major came out with its June quarter results post market hours on Friday. The company posted better-than-expected 5.3 per cent rise in its June quarter net profit, and raised revenue growth forecast for the current fiscal.

"Fundamentally there are important data that will be eyed such as WPI Inflation. While the cues will be taken from global markets, specifically where do we go from here as the trade tensions rise with India putting tariffs on US products. This can now be a process of months that would take to be sorted out and markets may not be taking any ease as of now," said Mustafa Nadeem, CEO, Epic Research.

Markets may also react to macroeconomic data released after market hours Friday.

India’s industrial output growth slipped to 3.1 per cent in May mainly on account of subdued performance of mining and manufacturing sectors, official data showed. Besides, retail inflation rose for the sixth month in a row to 3.18 per cent in June due to costlier food products such as grains, pulses and protein-rich items meat and fish.

Romesh Tiwari, Head of Research, CapitalAim, said, "Coming week, in India there would be a data of WPI inflation on Monday. On the international front, Fed Chair Jerome Powell speaks on Tuesday."

"On the home ground, result season is quickly unfolding and company specific movement could be key triggers for this week. Results to look forward this week are HDFC AMC, Federal Bank, Reliance Industries, HDFC Bank," said Jimeet Modi, Founder and CEO, SAMCO Securities and StockNote.

Wipro and Yes Bank too are slated to announce their earnings this week. Over the last week, the BSE Sensex fell by 777.16 points to close at 38,736.23 on Friday.