Sensex & Nifty movement for the week likely to be decided by macro-economic data and Q1Fy23 earnings. During the previous week, domestic indices witnessed sharp swings during intra-day, however, closed the week on positive note. On global front, 10yr UST is above 3% on the back of strong NFP data and EUR/USD at record lows amid investors rushing to save haven asset USD to park their funds.
TCS reported 16% YoY revenue growth and 5% YoY net profit growth. However, operating margins declined to 23.1% compared to 25% in the previous quarter. Company is still witnessing higher attrition rate of 19% and orderbook stood at USD 8.2 billion. On the other hand, Avenue Supermarts reported stellar earnings. Company reported better margins compared to previous quarter and continue to open more stores.
�In the coming week, investors will watch out for US corporate earnings and CPI data. meeting minutes. China�s GDP growth data will released. Domestic investors will watch out for CPI, WPI and IIP data points. Q1FY23 earnings will be in focus as LTTS, HDFC Bank, HCL, Wipro, ACC and Tata Elxsi will report earnings.
Equity Market Summary:
� In domestic markets FIIs/FPIs sold Rs. 502 billion in May 2022 and sold Rs. 41 billion in July 2022 (as of 10th July 2022).
� Wallstreet indices closed on a flat note on Friday amid investors expects stronger than expected jobs market would push Fed to hike another 75bps in the coming policy-meeting.
� US NFP added 372,000 payrolls in June 2022, much better than market forecasts of 268,000.
� US unemployment rate was unchanged at 3.6% in June 2022.
� Average hourly earnings for all employees on private NFP in the US rose by 0.3% MoM.
� The trade deficit in the US narrowed by USD 1.1 billion to a 5-month low of USD 85.5 billion in May 2022.
� S&P Global US Services PMI was revised higher to 52.7 levels in June 2022 from a preliminary of 51.6 levels.
� China�s inflation reported at record highs of 2.5%. Producer price inflation eased to a 15-month low of 6.1%.
� Most ECB policymakers favored a 25bps rate hike in July 2022, but some officials preferred to keep the door open for a larger increase, minutes from the ECB June policy-meeting showed.
� Brent crude prices declined by 4% during the week as there�s no clarity on clarity on demand while supply remains tight.
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