The upcoming week could be significant for those investing in the share market. The new trading week, starting July 14th, will see several events that could directly impact the direction of the share market (Share Market Action).
The Indian share market may experience significant fluctuations during the week commencing Monday, July 14th. The previous week saw a decline of approximately 932 points in the BSE Sensex and 311 points in the NSE Nifty. Several domestic and international factors contributed to this decline. Now, attention is focused on the major events of this week that will determine the market's trajectory.
Quarterly Results to Dictate Market Direction
Investors will be most focused on the quarterly results of major companies during the week starting July 14th. The April-June quarter results of companies will determine whether the market will rise or fall further. HCL Technologies, Tech Mahindra, Axis Bank, Wipro, and JSW Steel are among the companies expected to announce their Q1 results this week.
Analysts believe that the results from the IT and banking sectors could play a significant role in determining the market's direction. If the income of these companies is better than expected, the market may see a potential rise. Conversely, if the income is disappointing, the decline could intensify.
Inflation Data Will Also Heighten Market Concerns
Investors will also be watching the inflation rate data released this week. The Wholesale Price Index (WPI) and Consumer Price Index (CPI) figures will be released on July 14th. If the inflation rate is higher than expected, it could impact the Reserve Bank's next monetary policy, potentially leading to changes in interest rates.
The market sentiment is determined by the direction of interest rates; therefore, the impact of inflation data will be felt throughout the week's share trading.
Global Markets and Foreign Investors Will Also Have an Impact
Global indicators will also play a crucial role in the movement of the Indian share market this week. Global events such as inflation data in the United States, signals from the Federal Reserve, and China's GDP growth report will guide the market.
In addition, the stance of Foreign Institutional Investors (FII) will be extremely important for the market. If there is significant selling by FIIs, it could negatively impact the domestic market.
Focus on Crude Oil Prices
Changes in international crude oil prices this week could also affect the market. As India imports a majority of its crude requirements, a rise in prices could increase the costs of domestic companies, impacting their income.
The impact will be directly visible on stocks of oil marketing companies, the aviation sector, paint companies, and the auto sector.
Forex Market and Rupee Will Also Be in Focus
The movement of the rupee against the dollar could also influence the market this week. A weakening rupee would be a negative signal for import-based companies, while IT and pharma, which are export-oriented sectors, could benefit.
Which Sectors Will Be the Focus?
This week, the market will primarily focus on the IT, banking, metal, and auto sectors. Quarterly results and deal guidance from IT companies will create activity in this sector. The banking sector will also be active with the results from Axis Bank and other major players. Stocks like JSW Steel may set trends in the metal sector.
IPOs and Listings Will Also Be Discussed
Additionally, in the primary market, the market will keep an eye on the announcements of new IPOs and the listing of older offerings. Trading in the listing segment may commence for companies whose IPOs have recently been launched, potentially leading to sector-based activity.
A Volatile Week for Traders
Overall, the market will see activity on several fronts this week. Investors will be waiting for some major update every day, and rapid fluctuations in shares are expected. This week could prove to be quite busy and decisive for traders.
