Market Forecast: Impacts from Delhi Election Results, Q3 Earnings, and Inflation Data on D-Street
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Synopsis
The market outlook for the upcoming week in February is shaped by key elements including the Delhi elections' results, inflation metrics, and Q3 earnings. Experts predict that these factors will significantly influence investor sentiment and market movements.
Key Takeaways
- Delhi elections result boosts investor sentiment.
- Inflation data expected to decline to 4.69%.
- Q3 earnings reports from major firms will shape confidence.
- FIIs withdrew Rs 8,852 crore; DIIs invested Rs 6,449 crore.
- Global inflation data will impact future market trends.
Mumbai, Feb 9 (NationPress) The market outlook for the upcoming week in February will be influenced by critical elements such as the results of the Delhi elections, inflation data, and Q3 earnings.
The results from the Delhi Assembly elections were pivotal, with the Bharatiya Janata Party (BJP) achieving a robust victory, claiming 48 out of 70 seats.
Experts believe this success could enhance investor sentiment.
Investors will also closely monitor macroeconomic data. Key reports on inflation and industrial output are expected to be released on February 12.
Forecasts suggest that January inflation might decrease to 4.69 percent from 5.22 percent recorded the prior month, potentially affecting the Reserve Bank of India's next policy move.
Meanwhile, growth in industrial production is anticipated to taper off to 4.1 percent from 5.2 percent.
The corporate earnings reports will further influence stock market dynamics this week.
Prominent companies including Eicher Motors, Apollo Hospitals, Vodafone Idea, Hindustan Aeronautics, and Muthoot Finance are set to disclose their quarterly results.
The financial performance of these firms will significantly shape investor confidence.
Foreign institutional investors (FIIs) continued their selling trend last week, withdrawing Rs 8,852 crore from the market.
Conversely, domestic institutional investors (DIIs) provided some stability by injecting Rs 6,449 crore.
"Nifty displayed volatility throughout the week but managed to finish positively for the second consecutive week, remaining above the 23,450–23,500 range, indicating a potential bottom reversal," stated Puneet Singhania, Director at Master Trust Group.
He noted that the index is trading firmly above the significant 21-day EMA, bolstering positive sentiment and suggesting further upward momentum.
"Despite short-term fluctuations, the trend remains favorable, supporting a 'Buy on Dips' strategy," Singhania remarked.
On the global stage, various macroeconomic indicators will play a vital role in shaping market trends.
The US inflation data for January, due on February 12, is anticipated to reveal core inflation at 3.2 percent and headline inflation at 2.9 percent year-on-year (YoY).
Any variation from these projections could influence the future interest rate decisions of the US Federal Reserve.
Moreover, UK GDP data and inflation figures from China will be closely monitored.
Last week, the domestic equity benchmarks maintained their upward trajectory, with the Nifty rising by 0.33 percent to settle at 23,559.95, while the BSE Sensex increased by 0.46 percent to close at 77,860.
