Sensex and Nifty have cumulatively accumulated 11-13 per cent returns so far in 2024-25. Strong buys by both foreign and domestic institutional buyers also have been supporting the stock markets
Our Bureau
Mumbai
As the week gone by saw Indian stock markets touching fresh all-time highs and at the same time volatile trading days, the market is likely to see stock specific moves gain traction on the back of ongoing earning season, as per the market analysts.
Last week, the benchmark indices moved higher as the Friday session progressed and in the process touched a fresh high. The market was triggered by the latest moderation in US inflation, better-than-expected TCS results, and lack of negative market fundamentals.
Observing the market trends, Vinod Nair, Head of Research, at Geojit Financial Services said, “We expect stock-specific moves to gain traction due to the ongoing earnings season; indeed, IT will be in the limelight due to the good start to the earnings and outlook. The good progress in the monsoon and expectations of an uptick in volumes aided FMCG stocks to outperform the main indices. In the week ahead, economic data like China GDP, EuroZone CPI inflation, ECB policy, and the US Fed chair speech will be watched carefully by investors to get cues on market momentum.”
Sensex and Nifty have cumulatively accumulated 11-13 per cent returns so far in 2024-25. Strong buys by both foreign and domestic institutional buyers also have been supporting the stock markets.
Sensex closed over 600 points or 0.8 per cent higher at 80,519 points, whereas Nifty closed 186 points or 0.8 per cent higher at 24,502 points. Sectoral indices were mixed on Friday last week.
As per the market watchers the upcoming budget session scheduled from July 23, will deliver further incentives, including investments and capital expenditure for sectors such as Railways, Defence, Shipbuilding, Power Financing, and Industrial sectors.
“As the budget session approaches, the market is optimistic that the government will maintain its focus on infrastructure, defence, railways, and green energy. As of now, the market is not factoring in any negative surprises in the form of income tax changes, LTCG, STCG, STT, etc. Any changes in these areas will have a short-term negative impact on the market,” Krishna Appala, Sr. Research Analyst, at Capitalmind Research said.
The market participants will actively monitor the policy decisions of the new government.
As the companies have started revealing their first quarter results the specific sectoral stocks are showing fresh highs. IT saw a fresh rally and was up 4% after TCS reported inline numbers.
“IT sector is expected to be in focus as other IT majors will come out with results. On Monday, markets will react to India’s inflation data which will be released post-market. Key results next week include Jio Financials, HDFC Life, Asian Paints, LTI Mindtree, Infosys, Havells, Wipro, JSW Steel, Paytm, etc. Also globally, investors will take cues from China’s Q2GDP numbers, US Core Retail Sales data, and ECB interest rate decisions,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd
Piyush Goyal meets WTO DG, Indian diaspora, investors
On the first day of his visit to Zurich regarding implementation of the India-EFTA Trade and Economic Partnership Agreement (TEPA), Union Minister of Commerce and Industry Piyush Goyal engaged in a series of significant meetings.
The minister was on a two-day official visit (July 14-15) to Switzerland to take forward commitments as part of India’s recently signed free trade agreement with the four-nation European bloc or EFTA (European Free Trade Association).
On the first day, Goyal had high-level discussions with the Director General, World Trade Organisation (WTO), interactions with the Indian diaspora, and dialogues with potential investors, presenting India as an attractive destination for businesses and industry for trade and investment, according to an official statement on Monday.
The Minister further engaged with prominent members of the Indian diaspora in Zurich. He acknowledged their valuable contributions to the Swiss economy and Indo-Swiss relations, encouraging them to invest in India. He highlighted the extensive opportunities available under the leadership of Prime Minister Narendra Modi and the newly signed India-EFTA Trade and Economic Partnership Agreement.
Piyush Goyal met leading business figures and potential investors, including representatives from MSC Cargo. They discussed potential collaborations and investment opportunities in various sectors.
Goyal also convened a meeting with India’s WTO team in Geneva, led by the Ambassador and Permanent Representative of India at WTO, along with senior officers from the Department of Commerce. They thoroughly discussed priority issues currently under discussion or at various stages of negotiations in the WTO.
