This week, the domestic equities are eagerly awaiting the Union Budget announcement on Tuesday, which is expected to influence the market’s next direction. As Q1FY25 earnings are in focus, results from key companies will drive stock-specific actions in the market.
Global cues, particularly the tensions between the US and China, will also impact the market. Key events to watch include US Core PCE data and PMI numbers.
Despite consolidating, the market continued to reach new highs last week. Nifty crossed the 24,800 mark and Sensex surpassed 81,000. Profit booking, driven by global factors and pre-Budget caution, led to a shift towards heavyweights.
While Nifty ended flat, the broader market saw a decline with Midcap 100 and Smallcap 100 down 2.1% and 2.3% respectively. IT and retail sectors were the top gainers, while media and metals struggled.
The overall sentiment remains positive, supported by IMF’s raised GDP projection for India at 7%. With ongoing earnings season and global uncertainties, a cautious approach with a focus on large-cap stocks may be prudent.
(The writer is head of Retail Research, Motilal Oswal Financial Services Ltd)
Published on 21 July 2024, 22:42 IST