Economic Data, Q3 Earnings to Set Market Tone: Experts

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New Delhi: Macroeconomic data will dictate market movement during the week starting February 8, according to experts. Also, blue-chips including State Bank of India (SBI) and Oil & Natural Gas Corp (ONGC) are lined up to release their third quarter earnings during the week.

“Last batch of Q3 results, GDP data to dictate near-term trend,” said Vijay Singhania, founder-director of Trade Smart Online.

“For Indian markets, domestic themes are likely to take centrestage. GDP growth rate figures scheduled for February 8 is likely to give traction to the week’s moves,” said Anand James, co-head technical research desk at Geojit BNP Paribas.

Among major earnings during the week are from Dr Reddy’s Laboratories, Hindalco Industries, Punjab National Bank, GAIL, Cipla, Coal India, State Bank of India, ONGC, Hero MotoCorp, Tata Motors, BHEL, Sun Pharma and Adani Ports.

“Countdown to the Union Budget 2016-17 has begin with investors now building up expectations across sectors. We will continue see a lot of action in mid-cap stocks in anticipation of expectation from the forthcoming Budget,” Mr Singhania added.

“Going ahead, markets’ focus will shift to the budget,” said Dipen Shah, senior vice-president and head of private client group research at Kotak Securities.

On the macro front, data on inflation based on consumer price index (CPI) for January would be announced after market hours on Friday.

“Trend in global markets, next batch of Q3 earnings, movement of crude oil prices, domestic macroeconomic numbers will dictate trend on the bourses. Indices may seem to continue to trade in positive zone in the week ahead,” Hem Securities director Gaurav Jain said.

“With Chinese markets readying itself to enter a week long Lunar New Year holiday which is to commence on February 8, Indian markets opening moves would be largely guided by US close, during such period,” Mr James added.

Last week, the Sensex fell by 253.72 points to settle at 24,616.97. The 50-share Nifty also declined by 74.45 points to 7,489.10.