Week ahead: Q4 results, global cues, FII activity among key market trigger this week

Indian stock market ended with a decent gain of nearly 2% for the week ended May 17, with midcap and smallcap segments outperforming the benchmarks SENSEX and NIFTY50.

Shares of Mahindra and Mahindra, Adani Enterprises, and Larsen and Toubro ended as the top gainers among the NIFTY 50 constituents, rising between 6-14%.

On the flip side, Tata Motors, Bajaj Auto and Dr. Reddy's Laboratories ended as the top losers on the index, losing 2-9%.

Volatility remained high as the fear gauge India VIX jumped nearly 10% for the week, it hit the 52-week high level of 21.88 on May 14.

According to experts, the domestic market will continue witnessing volatility in the coming week due to ongoing Lok Sabha elections, March quarter earnings and global cues. Let's take a look at five key factors likely to influence the domestic market in the coming week:

Key macro events

Several key macroeconomic prints will be released this week across the globe. The US Federal Reserve will release minutes of its latest FOMC meeting on Wednesday, while Germany will release its Q1 GDP number on Friday.

Japan's trade balance numbers and the UK's CPI inflation figure for April will be in focus. Other key macro numbers in the coming week include India's services and manufacturing PMI data and the United States home sales data on May 23.

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Major corporate results

Over 850 companies will announce their March quarter results next week. Some big names like ONGC, Oil India, SAIL, City Union Bank, IRFC and India Cements are scheduled to release their March quarter numbers on May 20. BHEL and Eris Lifesciences are among the firms that will declare their quarterly results on May 21.

Power Grid, Paytm, Jubilant FoodWorks, Grasim Industries, Indigo Paints and Petronet LNG are among the companies that will release their results on May 22.

On May 23, investors will focus on ITC and IndiGo Q4 results.

NTPC, Ashok Leyland, Hindalco Industries, Hindustan Copper, Indiabulls Housing Finance and Suzlon Energy will release their March quarter numbers on May 24, along with several other companies.

Aurobindo Pharma and Divi's Laboratories are among those companies that will release their quarterly reports on May 25.

Next phases of Lok Sabha election

Four of the seven phases of the Lok Sabha election 2024 are over. In the coming week, the fifth phase (May 20) and the sixth phase (May 25) polls are likely to influence the investor sentiment. Low voter turnout numbers in the fourth phase have influenced domestic market sentiment recently. Investors and traders will keep a watch on the voter turnout in the upcoming phases.

Global cues

Geopolitical developments, comments from the US Federal Reserve officials and the performance of the US and other major Asian markets will influence the mood of the market back home.

FII, DII trend

The tug-of-war between foreign and domestic investors continued last week. Foreign institutional investors (FIIs) sold Indian stocks worth ₹10,557 crore in the cash market, while domestic institutional investors (DIIs) bought Indian equities worth ₹14,563 crore in the cash market.

The Indian stock market has been volatile lately due to heavy foreign capital outflow. However, the support from domestic investors helped SENSEX and NIFTY to end the week with gains, which indicated the growing might of domestic investors. In the coming week, the FII and DII trends may continue to be under the radar of investors.

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