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Indian equity markets are likely to take direction from September-quarter earnings, foreign institutional investor (FII) activity, global bond yields and crude oil prices in the coming week.
Investors will assess whether the recent recovery can sustain its momentum following a strong weekly rally.
The Nifty gained 2.77 per cent during the week, while the Sensex advanced 3.11 per cent.
Renewed buying in information technology (IT) stocks, easing pressure from global bond yields and continued domestic institutional investor (DII) inflows supported the gains.
Both benchmark indices extended their advances for a second consecutive session on Friday, raising hopes of a recovery after the recent correction.
The Sensex climbed 413.66 points, or 0.56 per cent, to close at 74,729.27. The Nifty 50 rose 148.80 points, or 0.65 per cent, to settle at 23,146.15. Over the week, the Sensex gained 2,256.94 points, while the Nifty added 625.7 points.
Market participants will closely examine September-quarter earnings to determine whether the recovery can extend beyond IT stocks.
Results from banking, consumption and industrial companies will offer insights into revenue growth, profit margins and demand conditions.
Management commentary and forward guidance will influence expectations.
Strong earnings and positive business outlooks could support further gains, while weaker results or cautious projections may restrict market advances.
Foreign investor activity will remain a key driver. Although overseas portfolio outflows have moderated, sustained FII selling could weigh on equities. Continued DII purchases may provide support.
Global bond yields and monetary policy expectations will matter. Rising yields could pressure equity valuations, while easing yields may improve risk appetite.
Investors will monitor crude oil prices and geopolitical developments.
Higher oil prices could increase India’s import bill, fuel inflation and squeeze corporate margins.
Escalating tensions could trigger volatility across global financial markets.
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