Global factors, macro data, earnings to drive market trends this week

Global markets trends, inflation, release of industrial output data and quarterly earnings will dictate movement of the equity benchmarks this week, analysts said, adding that volatility might continue amid slew of announcements of macroeconomic data at the global level too.

Moreover, foreign fund movement, crude oil prices and trend in rupee would also act as major drivers for the equity market, they added.

"The direction of global equity markets along with movement in dollar index and crude oil prices will continue to dominate while inflation numbers of the USA on May 11 and inflation and IIP numbers of India on May 12 will also cause volatility in the market," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Meena said the last batch of fourth quarter earnings will have a stock-specific movement with SBI, Tata Motors, L&T, UPL, Tech Mahindra and Cipla are among the key results slated to be announced.

"This week, participants will first react to Reliance numbers which were announced post-market on Friday. Besides, developments on the Russia-Ukraine front and performance of global markets will be on the radar.

"On the macroeconomic front, IIP (Index of Industrial Production) and CPI (Consumer Price Inflation) data are scheduled for May 12 and market will be eyeing these numbers to gauge the next possible move from the RBI," said Ajit Mishra, VP Research, Religare Broking.

Billionaire Mukesh Ambani's Reliance Industries Ltd on Friday reported a 22.5 per cent rise in its net profit for the quarter ended March 2022 on the back of bumper oil refining margins, steady growth in telecom and digital services and strong momentum in the retail business.

This week, market will track inflation numbers across the globe, said Vinod Nair, Head of Research at Geojit Financial Services.

Yesha Shah, Head of Equity Research, Samco Securities, said, "Given a slew of macroeconomic releases, the current result season and several IPOs that will open for subscription, volatility seen last week is expected to persist. Global market movements will be determined by inflation numbers of the United States and China.

"Data on India's industrial output, domestic inflation rates and manufacturing output will keep Indian markets on edge."

Last week, the Sensex slumped 2,225.29 points or 3.89 per cent, while the Nifty lost 691.30 points or 4.04 per cent.

Dalal Street wilted under intense selling pressure on Friday, mirroring a meltdown in world equities as investors braced for slowing global growth amid policy tightening by central banks.

The 30-share BSE Sensex dived 866.65 points or 1.56 per cent to finish at 54,835.58 on Friday. Similarly, the broader NSE Nifty tumbled 271.40 points or 1.63 per cent to settle at 16,411.25.

"It was the fourth straight week of loss for the Indian equity market and it was among the worst week of 2022 on the back of a surprise rate hike by RBI and a sharp fall in global markets after the US Fed policy," Meena added.