Q1 earnings, global cues and progress of monsoon among key factors to guide market next week
The Dollar Index, which measures the US currency against a basket of six peers, will also be closely watched.
Investors will turn their attention to the upcoming first-quarter earnings season for direction, which will be kicked off next week by software services heavyweight Tata Consultancy Services (TCS). TCS will announce Q1 result on 8 July 2021. Domestic and global macroeconomic data, the progress of monsoon, Covid updates and global cues are some of the key factors to guide the stock market in the coming week.
On the macro front, Markit Services PMI for June will be declared on 5 July 2021. Besides, the movement of rupee against the dollar and crude oil prices, trend in global stock markets will dictate trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be monitored.
The key thing to watch out for in the near future would be the US bond yields because any rise in yields can take out the FII money from developing countries like India to western markets and could also be a risk for emerging markets currencies.
The Dollar Index, which measures the US currency against a basket of six peers, will also be closely watched.
On the coronavirus front, investors would continuously watch out government’s course of action along with progress on vaccination drive. Besides, as new Covid-19 cases have seen a considerable decline, all eyes would be on state governments for further easing of the restrictions.
Progress of monsoon will also be closely watched.
Overseas, China will announce inflation rate for June on 9 July 2021.
In US, investors are looking to Friday’s (2 July 2021) US nonfarm payrolls report of June for confirmation of a shift in monetary policy.
The Euro Area Markit Manufacturing PMI for June will be declared on July 5, 2021.
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