Stock market: first quarter results and IPOs among the key factors that will drive the market next week

NEW DELHI: A volatile week ended with benchmarks – Sensex and Nifty – closing flat. Ahead of earnings season, IT stocks buzzed while auto stocks saw big moves when companies released June sales data.

The announcement of the government’s economic package, the decrease in the domestic infection rate and the progress of vaccination, despite the rapid increase in Covid cases around the world, influenced the domestic market last week.

Many of these factors will also impact the market next week. Covid cases and vaccination will be monitored by investors. Meanwhile, IPO mart will see two new issues, which will keep the primary market in the spotlight.

“Large and mid-cap IT companies will remain the focus of attention next week as the FY22 first quarter earnings season begins in India. Investors are therefore advised to look for any subsequent decline in earnings as an opportunity to enter the IT industry, ”said Nirali Shah, head of equity research, Samco Securities.

Here are the key factors that will drive the market next week:

1st quarter profitsQ1 earnings season officially kicks off with a few companies expected to release numbers. This includes names like Avenue Supermart, Indocity Infotech, Delta Corps and

among others.

US IT services companies performed exemplary with an upward revision to their outlook propelled by strong tailwinds. As a result, similarly, IT stocks in India saw a strong surge relative to healthy earnings expectations, analysts said.

PMI data: Investors will be keeping a close eye on Markit Services PMI and Markit Composite PMI data for June, which, if worse than expected, could trigger a sell off. despite the easing of restrictions, June manufacturing PMI data contracted to 48.1 from 50.8 in the previous month.

Two main problems: In the second half of the week, IPO mart will be the center of attention as two issues – GR Infraprojects and Clean Science Technology – will be open for public subscription. The gray market premium for these issues suggests that there is good demand for stocks among investors.

Covid case: Some countries in south-eastern Aisan are grappling with the worst pandemic epidemic, which is wreaking havoc on the market. Australia has also seen the spread of a highly contagious Delta variant leading to lockdowns in some of the larger cities. If these restrictions are not lifted, the global market could remain sluggish.

Clever outlook
The Nifty50 index closed negatively and remained in the red throughout the week, but it still hasn’t gone anywhere. In fact, the index finds strong demand around 15,600 and trades in line with other emerging market indices.

“As long as we are trading above the current support, which seems a more likely scenario, traders are advised to maintain a cautiously bullish bias and initiate long positions around the support while maintaining a stoploss just below 15,560. Immediate resistance is now placed at 15,900, ”Shah said.

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