Mumbai: Indian equity markets are likely to see stock-specific and range-bound movement this week, driven mainly by ongoing Q3 earnings announcements, global market cues, and foreign institutional investor
(FII) activity, according to market experts.
Geopolitical developments and updates on global trade negotiations will also remain key factors influencing investor sentiment.
Earnings Season Takes Centre Stage
Analysts said initial market reactions will be shaped by earnings from heavyweight companies such as Reliance Industries, HDFC Bank, and ICICI Bank. After that, attention will shift to results from several large- and mid-cap companies across sectors.
Reliance Industries reported an almost flat net profit of Rs 18,645 crore for the December quarter, as gains in some segments were offset by lower gas production and weak performance in the retail business. The company cited GST rate changes and festive demand being spread across quarters as key reasons.
In the banking space, HDFC Bank posted a strong 12.17 per cent jump in consolidated profit at Rs 19,807 crore, while ICICI Bank saw a 2.68 per cent decline in net profit to Rs 12,537.98 crore.
Banking stocks are expected to remain in the spotlight as investors assess asset quality, margins, and credit growth outlook.
Global Factors and Trade Talks in Focus
On the global front, investors will closely track US economic data, including GDP growth, jobless claims, and PMI numbers, which may influence global risk appetite and currency movements.
Uncertainty around US trade negotiations and tariffs on Indian imports continues to weigh on sentiment. However, market participants are increasingly optimistic about the India-EU free trade agreement, which is expected to be announced later this month and could boost investor confidence.
Pre-Budget Buzz and Key Results Ahead
With the Union Budget approaching, sector-specific movements based on expectations are likely to gain momentum. Stocks linked to infrastructure, energy, banking, and consumption may see increased activity.
Key companies scheduled to announce results this week include BHEL, LTIMindtree, PNB, AU Small Finance Bank, Bank of India, InterGlobe Aviation, DLF, BPCL, Adani Energy Solutions, and Adani Green Energy.
Last Week’s Market Performance
Markets remained largely flat last week, ending almost unchanged amid mixed global and domestic cues. In the holiday-shortened week, the BSE Sensex slipped marginally, while the Nifty closed slightly higher, reflecting a cautious investor approach.
