GDP data, Q3 earnings to set market tone this week

Investors are now building up expectations across sectors, with Budget around the corner; lot of action seen in mid-caps

Macroeconomic data, including GDP, IIP and consumer inflation, will dictate market movement this week, say experts, while blue-chips SBI and ONGC are also lined up to release their third quarter earnings numbers.

"Last batch of Q3 results, GDP data to dictate near-term trend," said Vijay Singhania Founder-Director Trade Smart Online.

"For Indian markets, domestic themes are likely to take centrestage. GDP growth rate figures scheduled for February 8 is likely to give traction to the week's moves," said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas.

Among major earnings this week are from Dr Reddy's, Hindalco Industries, Punjab National Bank, GAIL, Cipla, Coal India, State Bank of India, ONGC, Hero MotoCorp, Tata Motors, BHEL, Sun Pharma, and Adani Ports and Special Economic Zone.

"Countdown to the Union Budget 2016-17 has begun, with investors now building up expectations across sectors. We will continue see a lot of action in mid-cap stocks in anticipation of expectation from the forthcoming Budget," Singhania added.

"Going ahead, markets' focus will shift to the budget," said Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities.

On the macro front, data on inflation based on consumer price index (CPI) for January would be announced after market hours on Friday.

"Trend in global markets, next batch of Q3 earnings, movement of crude oil prices, domestic macroeconomic numbers will dictate trend on the bourses. Indices may seem to continue to trade in positive zone in the week ahead," said Gaurav Jain, Director, Hem Securities.

"With Chinese markets readying itself to enter a week long Lunar New Year holiday which is to commence on February 8, Indian markets opening moves would be largely guided by US close, during such period," James added.

On a weekly basis, the BSE Sensex has fallen by 253.72 points to 24,616.97. The 50-share Nifty also fell by 74.45 points to 7,489.10.