Earnings, macro data, global cues to dictate market trend, say analysts

Trading sentiment in the equity markets this week will be largely guided by quarterly earnings from major companies like Wipro and Infosys as well as macroeconomic data announcements, analysts said.

Management commentary from companies would be keenly watched for insights into how the Covid-19 pandemic has affected various sectors, they added.

"This week, participants will first react to the macroeconomic data and then focus would again shift to earnings announcements. Needless to say, global cues and updates related to Covid-19 will also remain on their radar," said Ajit Mishra, VP - Research, Religare Broking Ltd.

Retail inflation data will be announced on Monday, followed by WPI inflation numbers on Tuesday.

"The June quarter earnings season has started which holds key significance as it faced the maximum brunt of lockdown. Thus, management commentary would be keenly watched out for and could keep the markets volatile in the near-term," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Major companies scheduled to announce their quarterly earnings this week include Wipro, Federal Bank, Bandhan Bank, Infosys and HCL Technologies Limited.

"The outlook for the market is volatile as the earnings announcements have begun after a washout quarter for most industries.

"This uncertainty combined with profit-booking happening after the recent rally, means that volatility is expected to continue in the markets and investors would do well to be cautious and stock-specific in this market," said Vinod Nair, Head of Research at Geojit Financial Services.

During the last week, the 30-share BSE Sensex advanced 572.91 points or 1.59 per cent.

"In general, the bigger trend triggers will emerge on the back of how developed countries and foreign funds behave and respond to the post Covid-19 dynamics. Domestic factors may not have any major impact going ahead for the next few weeks," said Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.

India added arecord28,637 cases of coronavirus infection on Sunday, pushing the country's Covid-19 tally to8,49,553, while the death toll climbed to 22,674,according to the Union Health Ministry data. Globally, Covid-19 cases have topped 1.25 crore, with over 5,61,000 deaths.