Market next week: Global cues, last leg of Q4 earnings among other key triggers for Dalal Street

The Indian benchmark equities are likely to witness volatility in the coming week between May 22-26, 2023, and shall be influenced by multiple factors including last leg of Q4 earnings, monthly expiry, and global cues among others, according to several analysts.

They also believe that triggers like foreign investors’ flow, the rupee’s movement against the US dollar and crude oil trend may dictate the domestic markets next week.

“We expect choppiness to remain high in the coming week too, citing the scheduled expiry of May month derivatives contracts,” Ajit Mishra, VP – Technical Research, Religare Broking said in his comments for the next week’s trend in the equity markets.

Meanwhile, global markets performance and consistency in the foreign flows will remain on the participants’ radar for cues, the analyst believes. He noted that some prominent firms like BPCL, Ashok Leyland, Hindalco, ONGC, Grasim, and Zee will announce their numbers in the coming week.

Similarly, Arvinder Singh Nanda, Senior Vice President, of Master Capital Services said, “Global and domestic macro-economic data, crude oil prices, global market trend, FII and DII activity will be monitored in the forthcoming week.”

Quarterly earnings season will continue to be in focus with some major companies like NMDC, Bajaj Electricals, NMDC, Oil India, LIC, Vodafone idea, Ashok Leyland, BHEL, Zee Entertainment, National Aluminium, BHEL, and many more will be declaring their results this week, Nanda said in his note.

Globally, investors would continue to focus on US debt ceiling negotiations, the Senior VP at Master Capital Services said, adding that an agreement to lift the country’s $31.4tn borrowing limit would remove the risk of the federal government defaulting on its debts.

Additionally, market participants are eagerly anticipating the release of the Federal Open Market Committee (FOMC) meeting minutes, scheduled for May 24th, 2023, Pravesh Gour, Senior Technical Analyst, Swastika Investmart said in his comment on the trigger that could impact the market next week.

Among Nifty50 companies BPCL, Sun Pharma, Hindalco, Shree Cement, Grasim, ONGC, and M&M are scheduled to announce their earnings in the next week, Gour added in his comment.

Shrikant Chouhan, Head of Equity research (Retail), Kotak Securities said, “Weak global growth outlook continues to persist, even as inflation witnessed a moderation. Stocks-specific action will continue as companies continue to declare their Q4FY23 results.”

He added that the markets will also keep a tab on monsoon movement going ahead as in the latest update, the IMD expects the onset of monsoon over Kerala is likely to be slightly delayed.

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