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Market turns focus to quarterly earnings, macro data

Quarterly earnings from frontline companies -- TCS and Infosys, to begin with -- and release of macroeconomic numbers will decide stock market behaviour this week, say experts.

January 08, 2017 / 16:54 IST
     
     
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    Quarterly earnings from frontline companies -- TCS and Infosys, to begin with -- and release of macroeconomic numbers will decide stock market behaviour this week, say experts.

    "The December quarterly earnings from blue-chip companies and key macroeconomic data release are the big triggers for the market. We are now entering continuous news flow from now like earnings season and the budget," said Vijay Singhania, founder Director, Trade Smart Online.

    "If news that follows through is positive, we will see a continuation of the ongoing rally. But if the news gets negative, then we may see some correction taking place." Market participants will also watch out for industrial production and inflation data due this week.

    "Market movement going forward is dependent on important domestic data like industrial production along with inflation rate, which is scheduled to be released on Thursday," said Rohit Gadia, founder and CEO, CapitalVia Global Research.

    Over the past week, both key indices -- the Sensex and the Nifty -- rose 132.77 points, or 0.49 per cent, and 58 points, or 0.70 per cent, respectively.

    "Markets will first react to advance (estimates) of gross domestic product (GDP) data released by the government after market hours on Friday," Singhania noted.

    The GDP growth is estimated to slow down to 7.1 per cent in the current fiscal, from 7.6 per cent in 2015-16, mainly due to slump in manufacturing, mining and construction sectors, the government data showed on Friday without factoring in 'volatile' post-demonetisation figures.

    "Moving ahead, key things to watch would also be Union budget fever, which will keep playing its importance...," said Abnish Kumar Sudhanshu, Director and Research Head, Amrapali Aadya Trading and Investments.

    first published: Jan 8, 2017 02:48 pm

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