📷 Image Credits: Benzinga India
The Indian stock market opened July on a spectacular note with the longest winning streak since December 2023. Bulls seem to have tightened their grip ahead of Union Budget 2024, which will be unveiled later this month. Investors will keenly eye any Budget-related announcements as they may result in stock-specific action.
In the second week of July, investors will be focusing on the upcoming Union Budget, corporate announcements, foreign fund inflow, macroeconomic data, and global cues. The first set of April-June quarter results for fiscal 2024-25 (Q1FY25) will be crucial for market movement this week.
Tata Consultancy Services, IREDA, Tata Elxsi, HCLTech, DMart, and Delta Corp are some of the companies scheduled to post their earnings next week. Delta Corp will kick off earnings reports on July 9, followed by Tata Elxsi on July 10. TCS, the largest IT services company in India, will post its earnings on July 11. HCLTech is scheduled for July 12, along with Orient Hotels for Tata Group. PSU IREDA and D Mart will report earnings on July 13.
The IT sector earnings in Q1 2024-25 are expected to be a mixed bag with modest revenue growth and a strengthening trend in operating margins. Analysts are optimistic about the Indian IT sector, noting a stabilisation in revenue growth rates and anticipating an end to the earnings per share downgrade cycle. TCS, Infosys, HCLTech, and Wipro are some of the major players set to announce their Q1 earnings in the coming week.
Investors will closely watch management commentary for insights into the sector’s outlook during the earnings season. The upcoming Union Budget on July 23, 2024, under the Modi 3.0 government, will be a significant event with hopes pinned on growth-oriented policies and the development of the monsoon season. Domestically, key economic indicators like industrial production data and inflation rate data will also be unveiled on July 12, providing further insights into the country’s economic health.
Overall, market analysts expect markets to consolidate at a higher zone, with a positive tone. Nifty 50 finds support at 24,100, but a breakout above 24,500 could signal the next bullish phase. Traders are advised to focus on stock selection and monitor the potential for increased volatility in the market.
