Key developments that will drive the markets this week

10 Jan 2022 , 07:05 AM

Domestic markets in the last week traded volatile and ended marginally higher amid mixed cues. The beginning was upbeat however profit-taking at higher levels trimmed the gains as the day progressed. Finally, the Nifty ended higher by 0.4% to close at 17,812.70 levels. 
Meanwhile, volatility is likely to remain high amid mixed global cues and COVID-related updates. Besides, upcoming macroeconomic data (IIP, CPI, and WPI) and the beginning of the earnings season could further add to the choppiness.

Let us look at the key developments this week.

Q3 results to watch out

As we begin with the corporate earnings season nearly 68 companies releasing their quarterly. The IT large caps company’s will announce their quarterly numbers are Infosys, TCS, Wipro scheduled on January 12, HCL Technologies will declare on January 14 and one midcap Mindtree will announce on January 13.

HDFC Bank, Tata Metaliks, 5paisa Capital, Metro Brands, GNA Axles, Vikas Lifecare, Delta Corp, Earum Pharmaceuticals, Virinchi, Aditya Birla Money, CESC, GTPL Hathway, Plastiblends India, Onward Technologies, Tinplate Company of India, and Urja Global will also release their numbers in this week.

Macroeconomic data in focus

CPI inflation data for December and industrial output for November will be released on Wednesday evening, while WPI inflation will be released on Friday. Further, deposit and bank loan growth for the fortnight ended December 24, foreign exchange reserves for the week ended January 7, and balance of trade for the month of December will also be declared on Friday.

FII & DII flow
 
Foreign investors (FII) turned net buyers as they net bought more than Rs1,000cr worth of shares last week. Domestic institutional investors (DII) continued their support to the market, as they have made nearly Rs3,300cr of buying last week.

Omicron cases in India

Mumbai reported 20,318 new COVID-19 cases on January 8, marginally lower than yesterday when the city had logged 20,971 fresh infections. The death count increased by five in the preceding 24 hours. Whereas, Delhi reported 20,181 new COVID-19 cases, at a positivity rate of 19.60 percent. Seven deaths were recorded in the same period. The daily case count in the national capital has been rising steadily over the past two weeks.

The Arvind Kejriwal-led government has imposed a ‘yellow alert’, which has led to the closure of schools and regulation of working hours of non-essential businesses, in a bid to reduce the disease’s spread.

Maharashtra government will impose a night curfew across the state from 11 pm to 5 am, from January 10 onwards, as part of the restrictions announced to curb the COVID-19 spread. Schools and colleges across the state will remain closed till February 15. Gyms, swimming pools and entertainment parks have also been asked to remain shut.