Market forecast – What to expect this week?

30 Jan 2023 , 11:28 AM

Indian equity markets are likely to see another turbulent week. The negativity caused by Hindenburg Research report on Adani Group may cause continued selling by Foreign Investors this week. The report claims that shares of listed companies of Adani Group are overvalued by as much as 85%. This may put focus on other Indian stocks too that may be considered overvalued. Indian stocks at the beginning of this year, were among the most highly valued ones in the world, trading at an average P/E ratio of around 22. If a stock is perceived to be overvalued, then selling may be triggered in that stock. 

Some really positive surprise in FY 24 Budget may bring back the cheer in Indian equity markets. FY 24 Budget will be announced on February 1^st.

On the global front, Microsoft has said that its clients are cutting down spending in areas such as cloud computing.  Alphabet, Google’s parent, will be laying off around 12,000 of its employees. America’s GDP growth in the December quarter stood at 2.9%. This was a slowdown from the 3.1% GDP growth rate posted in the September quarter. Tesla has posted stellar performance in December quarter, with revenue of $24.3 billion and profit of $3.7 billion. 

US Federal Reserve will announce its next interest rate hike on February 1^st. This too will have some impact on movement of equity markets this week.