This Week's Stock Market Highlights Include Q1 Results, Oil Prices, Macro Data, and Other Considerat

The benchmark indices ended the week with slight gains despite the FIIs' continuous selling, the dropping rupee, and inflationary pressures. During the week that concluded on Friday, the BSE Sensex rose 179.95 points or 0.34 percent to 52,907.93, and the Nifty rose 52.80 points or 0.34 percent to 15,752.05. The market and the oil & gas sector both fell on July 1 as a result of an increase in the export tax on oil producers, but other sectors helped cut the losses later in the day. Additionally, on Friday, the rupee recovered from its record low to end the day 12 paise higher at 78.94 (provisional) against the US dollar. According to Dilip Parmar, Research Analyst at HDFC Securities, "the Indian government's effort to restrict oil exports and gold imports failed to influence the market's tone as participants remained concerned about capital outflows, risk-off emotions, and increasing deficit.

Experts predict that consolidation will continue, with attention focused on corporate earnings and international indications, such as the publication of the minutes from the Federal Reserve Open Market Committee (FOMC) meeting.

"In light of the concern over a global downturn, participants will be keenly watching its findings for any change in the advice. Additionally, the performance of the world indices, the movement of oil, and updates on the current conflict between Russia and Ukraine would be the main topics, according to Ajit Mishra, VP-Research at Religare Broking.

The upcoming week will also be important because TCS, a major provider of information and technology services, will report its first-quarter results on July 8th, 2022, signaling the beginning of a new earnings season. Investors would also be interested in the announcement of the S&P Global Services PMI on July 5. The S&P Global India Services PMI improved to 58.9 in May 2022 from 57.9 in April, the highest level since April 2011.

Q1 Company Results

On July 8, Tata Consultancy Services, the largest software services exporter in the nation, will start the corporate earnings season. The following day, Avenue Supermarts, the owner of the D-Mart grocery chain, will do the same. As a result, the market may take some stock-specific action.

While infrastructure and other cyclical areas might witness early symptoms of a downturn, the IT sector is predicted to experience margin pressure and an increase in attrition. For the quarter ended June 2022, experts predicted that auto and FMCG names will perform well.

Global Cues

Investors will be watching a few economic reports from the largest economy in the world, the United States (US), starting with Factory Orders MoM on July 5 and continuing with the MBA Purchase Index, Redbook, S&P Global Services PMI Final, FOMC Minutes on July 6, the Balance of Trade, Initial Jobless Claims on July 7, and Baker Hughes Total Rig Count on July 8.

Fed Meet Minutes

The Federal Reserve will publish the minutes of its June monetary policy meeting, which will be widely scrutinized for economic growth and the trajectory of rate hikes by investors around the world.

The FOMC increased interest rates by 75 basis points during its meeting in June, the largest increase in thirty years. To keep inflation under control and restore it to its 2 percent target without slowing down the economy, Chairman Jerome Powell has hinted at another 50-75 basis point rate increase in the July meeting.

Oil prices

Oil prices continued to fluctuate, with benchmark Brent oil futures rising as high as $120 per barrel and falling as low as $108 per barrel in the last week before settling 1.4 percent lower than the week before. Oil remains a danger at $100 per barrel for importing nations like India and is anticipated to contain market potential until it falls well below that level, according to experts.

Geopolitical tensions' limited supply has continued to sustain prices, but recession concerns have dampened the mood and slightly dragged down prices every week.

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