Business

Market Outlook: Delhi Polls’ Outcome, Q3 Earnings, Inflation Data Set To Drive D-street Action

Key factors like the Delhi polls outcome, inflation data, and Q3 earnings will guide the market outlook for the next week of February.

The announcement of the Delhi Assembly election results was another significant event as the Bharatiya Janata Party (BJP) secured a strong victory in the Assembly elections, winning 48 out of 70 seats.

Analysts believe this win could contribute to positive investor sentiment. Macroeconomic data will be another major focus for investors. Inflation and industrial output data will be released on February 12.

Analysts project January inflation will drop to 4.69 percent from 5.22 percent in the previous month, which could influence the RBI’s next policy decision. Meanwhile, they expect industrial production growth to slow to 4.1 percent from 5.2 percent.

Corporate earnings will also impact stock market movement this week. Major companies such as Eicher Motors, Apollo Hospitals, Vodafone Idea, Hindustan Aeronautics, and Muthoot Finance will report their quarterly results.

The financial performance of these companies will shape investor confidence. Foreign institutional investors (FIIs) continued their selling spree last week, pulling out Rs 8,852 crore from the market.

However, domestic institutional investors (DIIs) provided some stability by investing Rs 6,449 crore. “Nifty remained volatile throughout the week but managed to close positive for the second consecutive week, sustaining above the 23,450–23,500 zone, signaling a potential bottom reversal,” Puneet Singhania, Director of Master Trust Group said.

He added that the index continues to trade decisively above the critical 21-day EMA, reinforcing positive sentiment and indicating further upside momentum.

“Despite short-term volatility, the trend remains positive, supporting a ‘Buy on Dips’ strategy,” Singhania mentioned.

On the global front, several macroeconomic indicators will play a crucial role in influencing market trends. The US is expected to release inflation data for January on February 12, showing core inflation at 3.2 percent and headline inflation at 2.9 percent year-on-year (YoY).

Any deviation from these estimates could impact the US Federal Reserve’s future interest rate decisions.

Additionally, UK GDP data and China’s inflation numbers will also be watched closely. In the last week, the domestic equity benchmarks continued their upward momentum as the Nifty advanced by 0.33 percent to close at 23,559.95, while the BSE Sensex rose 0.46 percent to settle at 77,860.

Also Read: India’s Graduate Employability Improves Amid Growing Demand For Skilled Professionals: Mandaviya

IANS

Recent Posts

JP Nadda Slams Rahul Gandhi’s ‘Match-Fixing’ Claims As ‘Desperation Of Losing’ Polls

Rahul Gandhi's opinion piece appeared in a national daily and sparked political uproar. Opposition parties…

11 hours ago

Poverty In India Reduced Via Tangible Boost In Household Living Standards, Incomes

In 2022–23, poverty under the revised $3.00 line stood at just 5.25 per cent in…

11 hours ago

Chhattisgarh: Seven Maoists Killed In Indravati National Park Operation

Five Maoists were killed in two separate encounters with security forces in Chhattisgarh’s Bijapur district,…

12 hours ago

Carney Invites Modi To G7 Summit, Highlights India’s Global Supply Chain Role

Canadian Prime Minister Mark Carney said the most populous country, with the fifth-largest economy, must…

12 hours ago

RBI Frontloads Rate Cuts To Boost Growth Amid Low Inflation: Crisil

The Reserve Bank of India (RBI) has frontloaded its rate cuts to support economic growth,…

13 hours ago

PM Modi Urges Global Action On Coastal Resilience At Nice Summit

PM Narendra Modi on Saturday called for urgent global action to build infrastructure that can…

13 hours ago