Week Ahead – Focus on quarterly Results, Covid vaccine begin
The market made a historic high in the first week of year 2021, rising 2 percent for second week in a row backed by positive global cues after Democratic Party’s control over US senate, optimism on vaccine rollout, hope of strong quarterly earnings and consistent liquidity flow.
Sensex rallied 913 points to 48,783 and the Nifty jumped 329 points to 14,347, while the broader markets continued to outperform benchmarks as the Nifty Midcap 100 index climbed over 5 percent and Smallcap 100 index gained 4 percent during the week.
Positive sentiment in the market after tech major TCS announced strong quarterly results. Next week, market will keenly watch on forthcoming Union (1st Feb) and the momentum is unlikely to get impacted by bears, at least till the Union Budget 2021.
Moreover, strong FIIs inflow, favourable macro data, rally in the global market, along with liquidity support and vaccine progress will be positive for the market.
FIIs net bought more than Rs 9,200 crore worth of shares in January so far, in addition to around Rs 53,500 crore of inflow in December. Hence, as long as the flow remains, the momentum in market is expected to be intact.
Among the major events next week – In the coming week, November IIP, along with CPI inflation for December will be released in the evening on January 12, while WPI inflation for December is due on January 14.
The government decided to start COVID-19 vaccination drive across the country on January 16.
Results Date – Next three biggest companies Infosys, HCL Technologies and Wipro will release their quarterly numbers next week – Karnata Bank and Tata Elxsi (Tuesday), Infosys and Wipro (Wednesday), Shopper Stop, HCL Tech, Hathway Cable, L&T Finance, PVR and HCL Tech (Friday) and HDFC Bank, IRB Invit (Saturday).
Global data – US – MBA Mortgage Application and Inflation (Wednesday), US Initial Jobless Claims (Thursday), US Retail sales and Industrial Production Data (Friday). Euro Zone – Industrial Production data (Wednesday), ECB Monetary Policy Meeting (Thursday). China – December Inflation (Monday) and Vehicle sales (Thursday).
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