Stock market: A busy week ahead, marked by major earnings announcements, global market cues, and multiple corporate actions, is expected to steer investor sentiment as markets resume trading on Monday. This follows after Indian benchmark indices ended the week on a weaker note, with the Nifty declining 0.7%, signaling caution among investors ahead of crucial developments.Rupak De, Senior Technical Analyst at LKP Securities told ET that the Nifty faced selling pressure on Friday, dipping close to 24,900, where it found some support.Despite the correction, the index managed to stay above its 50-day exponential moving average (EMA), hinting at a potential short-term pullback, he continued.However, De further added that the market remains a ‘sell on rise’ scenario as long as the index remains below 25,260.
Key market drivers this week:
1. Q1 corporate earnings: The upcoming week will be earnings-heavy, with 286 companies set to report their June quarter results.Among Nifty firms, major players like Infosys, Eicher Motors, UltraTech Cement, Bajaj Finance, Tata Consumer Products, Dr. Reddy’s, Cipla, Kotak Mahindra Bank, and SBI Life Insurance are scheduled to announce results. Additionally, Paytm, United Breweries, Zee Entertainment, IRFC, and Bajaj Housing Finance will also be in focus. Market analysts believe Monday’s trading session will be key, as investors are set to react to the Q1 results of major companies like Reliance Industries, HDFC Bank, and ICICI Bank.2. US market trends: Wall Street ended mixed on Friday, with the Dow Jones falling 142 points to 44,342.20, the S&P 500 closing flat, and the Nasdaq inching up slightly. Investor focus remains on upcoming US corporate earnings and Fed Chair Jerome Powell’s scheduled remarks this week, which could offer cues on interest rate outlooks.3. Corporate actions including bonus issue: More than 100 companies will take corporate actions this week, including record dates for dividends, bonus issues, and rights offers. LIC, Hero MotoCorp, Divi’s Labs, Shree Cement, Zydus Lifesciences, and Union Bank of India are among the firms declaring dividend record dates. Mahindra Logistics will determine the record date for its rights issue on July 23, while Focus Business Solution will do so for its bonus issue, ET reported.4. IPO buzz: The primary market is set to be active. In the mainboard space, four IPOs are scheduled: IndiQube Spaces (Rs 700 crore issue), GNG Electronics (both opening July 23), Brigade Hotel Ventures (opening July 24), and Shanti Gold International (opening July 25). The SME segment will see IPOs from Monarch Surveyors, TSC India, and Patel Chem Specialities.5. Institutional Investors activity: Market direction will also depend on institutional flows. On Friday, Foreign Institutional Investors (FIIs) bought equities worth Rs 374.74 crore, while Domestic Institutional Investors (DIIs) remained strong buyers at Rs 2,103.51 crore.6. US data in focus: The coming week is set to be critical for the markets, with heavyweight earnings, macroeconomic data, and trade developments likely to steer sentiment.“In the US, attention will turn to Existing Home Sales (June) on July 23, which could highlight the resilience (or weakness) in the housing market amidst sticky mortgage rates. A day later, markets will keenly watch the Initial Jobless Claims, a critical labour market pulse, alongside the S&P Global Manufacturing PMI (Preliminary) for July. Any softening in jobless claims or stabilisation in PMI could boost investor sentiment, particularly if recession concerns re-emerge,” the Bajaj Broking Research told PTI.7. Rupee movement: The rupee posted its second weekly loss, ending at 86.1475 against the US dollar, pressured by equity outflows and corporate demand for dollars. With foreign investors selling about $300 million in July so far, the rupee is expected to trade closer to 86.50 in the near term. Meanwhile, the dollar index is on track for its second weekly gain due to strong US economic data.8. Crude oil prices: Oil prices remain a key factor. WTI crude slipped to $67.30, while Brent crude held near $69.28. Geopolitical tensions, particularly over drone attacks in Iraq, continue to pose supply risks, which could influence inflation and, in turn, market direction.As the new trading week kicks off, all eyes will be on earnings, macroeconomic cues, IPO action, and global market trends to shape investor sentiment.
