us-fed-decision-earnings-to-influence-stocks

This week, stock markets are set to be influenced by several key factors including the US Federal Reserve's interest rate decision, ongoing quarterly earnings, macroeconomic data, and Foreign Institutional Investor (FII) trading activity, according to analysts.

 

In addition to these domestic triggers, investors will be closely watching global market trends and oil price movements for further guidance.

 

"This week, the focus will shift to global cues, particularly the US markets,” said Santosh Meena, Head of Research at Swastika Investmart Ltd.

 

The US Federal Reserve is set to announce its interest rate decision on July 31, a crucial event as markets anticipate a potential rate cut later this year. "Additionally, other macroeconomic data from the US and China will be closely monitored. On the domestic front, Q1 earnings will remain a key trigger, with many large companies scheduled to report their results," Meena added.

 

Among the companies set to announce their quarterly results this week are GAIL, Adani Power, Bank of Baroda, BHEL, Coal India, M&M, Maruti, Tata Steel, Adani Enterprises, and Tata Motors.

 

"The outlook for the market will be guided by major domestic and global economic data such as India's infrastructure output, manufacturing PMI, China manufacturing PMI, Bank of England's interest rate decision, US nonfarm payrolls, and the Federal Reserve's press conference," explained Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd.

 

Vinod Nair, Head of Research at Geojit Financial Services, emphasized that the direction of the domestic market will likely be influenced by the progress of the earnings season. Additionally, global economic updates, including the US Fed and Bank of England's monetary policies, US employment data, and Eurozone GDP figures, are expected to impact market trends.

 

Last week was marked by volatility and profit-taking, but the BSE benchmark still rallied 728.07 points or 0.90 percent, and the Nifty climbed 303.95 points or 1.23 percent.

 

"Global investors will in the coming week look out for earnings from the US market's biggest tech companies, a Federal Reserve policy meeting, and closely watch employment data that could determine the near-term trajectory of US stocks," said Deepak Jasani, Head of Retail Research at HDFC Securities.