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Budget, profits and global trends shape stock markets: analysts

Budget, profits and global trends shape stock markets: analysts

Scholarship

Scholarship

Analysts say the budget outcome, corporate quarterly earnings and global trends are the key factors influencing stock market sentiment this week.

In addition, the trading activities of foreign investors, the trend of the rupee against the dollar and the movement of the global benchmark for oil, Brent crude, are also important aspects to watch.

“The upcoming Union Budget on 23 July 2024 has become the next focus for the market, with high expectations for growth-oriented policy measures. Several factors will influence the market direction, including Q1 FY25 earnings, domestic and global economic data, and broader global market trends.

“Market sentiment will be closely monitored by keeping an eye on the activities of foreign and domestic institutional investors (FII and DII) and crude oil prices,” said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.

Blue chip companies including Bajaj Finance, Hindustan Unilever, Axis Bank, Bajaj Finserv, Larsen & Toubro, DLF, Tech Mahindra and Nestle are scheduled to report earnings later this week.

“The direction of the market will be determined by the outcome of the upcoming budget,” said Vinod Nair, head of research at Geojit Financial Services.

According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, the Union Budget will determine the next direction for the market.

“The earnings season will also gain momentum, leading to stock-specific measures,” he added.

HDFC Bank continues to be in the spotlight on Monday after the company’s consolidated net profit grew 33.17 per cent to Rs 16,474.85 crore in the June 2024 quarter.

Last week, the BSE benchmark rose 85.31 points or 0.10 percent and the Nifty rose marginally by 28.75 points or 0.11 percent.

The 30-share BSE Sensex hit a new high of 81,587.76 on Friday and the NSE Nifty also hit a new high of 24,854.80 on the same day.