Fed Rate Decision and Q1 Earnings to Drive Stock Markets This Week: Pundits
- Posted on July 28, 2024
- News
- By Arijit Dutta
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The US Fed's interest rate decision, Q1 earnings reports, and macroeconomic data are key factors expected to drive stock markets this week, with significant companies set to announce their results and global market trends being closely monitored.
The key events that are likely to determine the course and direction of stock markets in the next one week or so are the US Federal Reserve’s interest rate decision, more corporate earnings reports and results, macroeconomic indicators, and movements of foreign institutional investors (FIIs). Investors will also look at international markets and trends of move- ments in international oil prices for further signals.
“This week, however, attention will turn towards global signals especially the US market; especially the US Federal Reserve is expected to announce its interest rate decision on July 31 and any further indication of a rate cut in the near term this year will be keenly awaited besides other macroeconomic data from US and China will also be watched,” Meena added. On the home front, Meena said that Q1 earnings will continue to remain a trigger;
Some of the companies which are scheduled to report their quarterly result this week include GAIL, Adani Power, Bank of Baroda, BHEL, Coal India, Mahindra & Mahindra, Maruti, Tata Steel, Adani Enterprises and Tata Motors.
“The market direction will be influenced by the Indian and global economic indicators like Infrastructure output, Manufacturing PMI India, Manufacturing PMI China, BoE Interest rate announcement, US Non-Farm payroll and Federal Reserve press conference. ” said Arvinder Singh Nanda, Senior vice President, Master Capital Services Ltd.
Vinod Nair, Head of Research at Geojit Financial Services, said, “Subsequently, the domestic market will be dictated by the performance of the earnings season besides updates on the global economic front such as the US Fed, BoE monetary policies, US employment data as well as the GDP figures of the Euro zone.
The previous week was characterized by weakness and profit-taking during the last week of July. More so the BSE benchmark soared to 728. 07 points, or 0. while, the Bankex was up by 90 percent, and the Nifty by 303. 95 points, or 1. 23 percent.
"Global investors will in the coming week look out for earnings from the US market's biggest tech companies, a Federal Reserve policy meeting, and closely watch employment data that could determine the near-term trajectory of US stocks," said Deepak Jasani, Head of Retail Research at HDFC Securities.
