Week Ahead: Q4 Results, Iran-Israel conflict, global cues among key market
As April fast draws to a close, investors will keenly eye several stock market triggers in the fourth week of the month with the ongoing January-March quarter results for fiscal 2023-24 (Q4FY24), domestic and global macroeconomic data, developments around general elections 2024, impact of the Israel-Iran conflict, crude oil prices, US bond yields, and global cues.
Domestic markets edged lower amid excessive volatility and lost over one and a half per cent, tracking feeble global cues. The tone was negative from the beginning, which further deteriorated with a decline in world indices however rebound on Friday trimmed some losses.
Benchmark indices Nifty 50 and Sensex, settled at 22,147 and 73,088.33 levels respectively. Nifty 50 and Bank Nifty snapped their four-week rising streak amidst escalating geopolitical tensions in the Middle East.
US-rate sensitive IT stocks dropped 4.71 per cent over the week, their second worst week in 12 months, on fading hopes of early US rate cuts and softer reports from market leaders TCS and Infosys. Overall, all the key sectors felt the heat wherein IT, realty and banking were among the top losers. The broader indices also witnessed pressure and shed in the range of 1.4 per cent-2.7 per cent.
‘’Optimism prevailed with hopes of limited prospects of escalation in Iran-Israel tensions. However, the domestic market failed to offset the losses sustained throughout the week. Globally, caution persisted as the situation in the Middle East remains fragile,” said Vinod Nair, Head of Research, Geojit Financial Services.
‘’Mid- and small-cap stocks also corrected, highlighting concerns over premium valuations. Muted Q4 earnings expectations and weak IT results could extend the consolidation. Large caps could offer solace for investors, given earnings stability,” added Nair.
Coming to primary markets, a few initial public offerings (IPO) and listings are slated across the mainboard and small-and-medium enterprises (SME) segment. The week will be critical from domestic and technical point of view as investors will eye economic indicators and the latest corporate results.
Overall, analysts expect volatility to continue over quarterly results and said that Nifty 50 needs to have sustainability at 22,300 before it can move to recovery, Experts advise traders to prefer a hedged approach and wait for clarity.
Here are the key triggers for stock markets in the coming week:
Q4 Results, macro data
The ongoing Q4FY24 earnings season will be a major factor in driving the market movement. Some major companies will announce their quarterly numbers such as Reliance Industries, Bajaj Finance, Tech Mahindra, Nestle India, HCL Technologies, Maruti Suzuki, among others. On the macroeconomic front, India’s purchasing managers indices (PMI) numbers will be released.
4 new IPOs, 5 listings to hit D-Street
In the mainboard segment, JNK India IPO will open for subscription while Vodafone FPO will conclude on April 22. In the SME segment, Varyaa Creations IPO, Emmforce Autotech IPO, and Shivam Chemicals IPO will open for bidding.
Among listings, shares of Vodafone FPO will debut on BSE, NSE. From SMEs, shares of Greenhitech Ventures, Birdy’s IPO, Ramdevbaba Solvent IPO, and Faalcon Concepts IPO will debut on SME platforms this week.
FII Activity
Foreign institutional investors…
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