New Delhi: Indian stock markets are expected to remain volatile this week as investors closely track September quarter earnings, inflation figures, crude oil prices and global developments, analysts said.
Results from Wipro, HCL Technologies and Tech Mahindra will remain in focus after better-than-expected earnings from Tata Consultancy Services (TCS) helped markets recover last week.
Inflation Data In Spotlight
September consumer price inflation (CPI) and wholesale price inflation (WPI) data will play a crucial role in shaping market sentiment.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said higher inflation could revive concerns over further Reserve Bank of India (RBI) rate hikes.
Banking, automobile and real estate stocks could face pressure, while softer inflation may provide temporary relief.
However, Brent crude trading above USD 100 per barrel remains a major concern.
IT Earnings To Drive Action
Quarterly results from HCL Technologies, Wipro and Tech Mahindra will determine whether the recent recovery in IT stocks continues.
Other companies announcing results include BHEL, Canara Bank, HDB Financial Services, HDFC Asset Management Company and Nestle.
IT stocks rallied on Friday after TCS shares jumped over 4 per cent following stronger-than-expected quarterly earnings.
Oil Prices, FII Selling Remain Risks
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, expects markets to consolidate amid improving earnings and global uncertainties.
Persistent foreign institutional investor (FII) selling and elevated crude oil prices could restrict market gains.
Geopolitical tensions involving Iran and the Strait of Hormuz also threaten global energy supplies.
Global Cues And Nifty Outlook
Investors will monitor US inflation, employment figures, Treasury yields and rupee movements.
After eight consecutive weekly declines, the Nifty gained 0.43 per cent last week, indicating some stabilisation.
The Sensex advanced 562.63 points, or 0.78 per cent, while the Nifty rose 98.5 points.
Analysts expect selective buying as quarterly earnings gather momentum.
