Dalal Street Week Ahead: Key Market Trends, CPI Inflation, Q3 Earnings, and Powell’s Testimony to Watch
Dalal Street Week Ahead: The Indian stock market is set for a crucial week as multiple factors will influence trading sentiment. Investors will closely monitor economic data, quarterly earnings, global developments, and Federal Reserve Chair Jerome Powell’s testimony. Additionally, IPOs and foreign investor movements will play a key role in shaping market trends.
India’s CPI Inflation and Economic Data
One of the biggest factors this week is the release of India’s CPI inflation data for January, scheduled for February 12. Economists expect inflation to drop below 5%, down from 5.22% in December 2024. Lower inflation could impact RBI’s future policy decisions. Additionally, industrial and manufacturing production data for December will also be released the same day.
Other key domestic data to watch
WPI inflation – February 14
Bank loan and deposit growth figures – February 14
Foreign exchange reserves data – February 7
US Inflation and Powell’s Testimony
Global markets will focus on US inflation data for January, which is expected to remain stable at 2.9%. Additionally, Federal Reserve Chair Jerome Powell will testify before the Senate Banking Committee on February 11 and the House Financial Services panel on February 12. His comments on interest rates and inflation control will be crucial for market sentiment worldwide.
Quarterly Earnings: Key Companies Reporting Results
The December quarter earnings season will conclude this week, with over 2,000 companies announcing their results. Some key names include:
Nifty 50 companies: Eicher Motors, Hindalco Industries, Apollo Hospitals, Grasim Industries
Other major firms: Vodafone Idea, Ashok Leyland, Bharat Forge, Jubilant FoodWorks, IRCTC, Berger Paints, Muthoot Finance, United Breweries, and Glenmark Pharmaceuticals
Investors will look for earnings trends to gauge sectoral performance.
IPOs to Watch Out For
Dalal Street will see multiple IPO launches this week, including three major public issues:
Ajax Engineering – February 10
Hexaware Technologies – February 12
Quality Power Electrical Equipments – February 14
Several SMEs, including Chandan Healthcare, Voler Car, and Maxvolt Energy Industries, will also launch their IPOs, providing fresh investment opportunities.
FII-DII Flow and Market Sentiment
Foreign Institutional Investors (FIIs) have continued their selling streak, offloading over ₹10,000 crore worth of shares in February after selling ₹87,375 crore in January. However, Domestic Institutional Investors (DIIs) have supported the market, buying ₹7,274 crore worth of equities. The trend of FII outflows and DII inflows will be crucial in determining market stability.
Global Market Trends & Oil Prices
Oil prices have been volatile, with Brent crude falling to $74.66 per barrel. Increased US oil production and rising stockpiles have led to a bearish trend in crude, which is beneficial for India as a major oil importer.
Additionally, global markets will watch for
Europe and UK Q4 GDP estimates
China’s January vehicle sales data
US-Iran tensions impacting crude oil prices
Technical View: Nifty and Market Projections
Market experts suggest that Nifty 50 will face resistance at 23,800, with an upward target of 24,000-24,200. Strong support lies at 23,400, and if it breaks below 23,250, further downside risks may emerge.
Key levels to watch
Nifty Resistance: 23,800-24,200
Nifty Support: 23,250-23,400
Conclusion
This week will be crucial for traders and investors as macroeconomic data, corporate earnings, and global cues will drive market sentiment. Investors should keep an eye on inflation numbers, Powell’s testimony, IPO listings, and foreign investment trends to make informed decisions. The market may remain volatile, with a potential for consolidation before the next rally.
