Market Forecast: Trump's Inauguration and Q3 Earnings to Shape Next Week
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Synopsis
The upcoming week's market outlook will be influenced by Donald Trump's inauguration, Q3 FY25 earnings reports, FIIs activity, and crude oil prices. With significant company earnings expected, volatility is anticipated in the global markets.
Key Takeaways
- Trump's inauguration impacts market dynamics.
- Q3 FY25 results from over 240 firms are on the horizon.
- FIIs maintain a negative sentiment.
- Market indexes show bearish trends.
- Potential buying opportunities if the index surpasses 23,400.
Mumbai, Jan 19 (NationPress) The market outlook for the upcoming week will be significantly influenced by the Donald Trump factor, Q3 FY25 results, foreign institutional investors (FIIs), the rupee against the dollar, and crude oil prices.
Trump is set to take the oath as the 47th President of the United States on January 20, with investors closely monitoring impending tariff announcements. Market analysts suggest that global markets may experience volatility in the coming days.
“Looking forward, the policies and statements from the newly inaugurated US president will be under scrutiny, particularly concerning tariffs. Heightened inflation in Japan or stricter policies from the Bank of Japan could affect market sentiments,” experts noted.
Next week will see over 240 companies releasing their quarterly earnings, with significant attention on Adani Green Energy, HDFC Bank, One 97 Communication (Paytm), Zomato, IDBI Bank, Indian Overseas Bank, Tata Technologies, Bharat Petroleum Corporation, and Indigo, among others.
The primary market is set to introduce four new IPO offerings for subscription next week, three of which will be from the small and medium enterprises (SME) sector.
The Indian stock market experienced a downturn from January 13 to January 17. The Nifty index dropped by 228.30 points or 0.97 percent, closing at 23,203.20, while the Sensex fell by 759.58 points or 0.98 percent, ending at 76,619.33. During this timeframe, the Nifty Bank index closed at 48,540.60, down 193.55 points or 0.40 percent.
Additionally, the previous week was marked by fluctuations for Nifty Midcap stocks, with the index finishing at 54,607.65, reflecting a slight gain of 21.90 points or 0.04 percent.
The Nifty has declined for the second consecutive week, driven by ongoing selling pressure. The index is currently trading below its 21-week and daily exponential moving averages and has dropped beneath the ascending trendline, indicating a bearish trend, according to experts.
Should the index reclaim 23,400, there may be opportunities for buying, potentially driving it up to 23,700.
On January 17, FIIs sold shares worth Rs 3,318.06 crore, while domestic institutional investors purchased shares worth Rs 2,572.88 crore. The sentiment among FIIs continues to be negative, with Foreign Portfolio Investors (FPIs) having sold Indian equities totaling Rs 44,396 crore so far this month.
