Movement in the equity market this week will largely be dictated by quarterly earnings of blue-chip firms HDFC Bank and Hindustan Unilever, along with the announcement of WPI inflation data and global trends, analysts said.
Trading activity of foreign investors, global oil benchmark Brent crude and rupee-dollar trend would also guide the movement.
"The focus will shift towards Q3 earnings, with key players such as HDFC Bank, HUL, Asian Paints, IndusInd Bank, and Ultratech Cement set to announce their results. Pre-Budget expectations are also likely to influence the sector and stock-specific movements," Santosh Meena, Head of Research, Swastika Investmart Ltd said.
As the market gears up for the Budget, institutional flows will play a crucial role in determining its direction, he added. WPI inflation data for December is scheduled to be announced on Monday.
"On the global front, macroeconomic data from the US and China, along with movement in the dollar index, US bond yields, and crude oil prices, will be closely monitored. Geopolitical tensions worldwide continue to be a source of uncertainty, demanding the market's vigilant attention," Meena said.
In a double whammy for the economy, retail inflation soared to a four-month high of 5.69 per cent in December, while industrial production fell to an 8-month low of 2.4 per cent in November, according to a set of government data released on Friday.
"This week, the market will take cues from December quarter results and India's inflation data," Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd, said.
Last week, the BSE benchmark jumped 542.3 points, or 0.75 per cent, and the Nifty climbed 183.75 points, or 0.84 per cent.
Benchmark equity indices Sensex and Nifty surged over 1 per cent to hit their fresh all-time highs on Friday.
"The Q3 FY24 earnings season will be the biggest factor in driving the market movement. Trends in global markets, domestic and global macroeconomic data, crude oil prices and the movement of rupee against the dollar will also dictate trends this week.
"Investment by FPIs (Foreign Portfolio Investors) and DIIs (Domestic Institutional Investors) will also be monitored," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.
The stocks of Wipro and HCL Technologies may remain in focus on Monday after they declared their earnings after the market hours on Friday.
IT company Wipro on Friday posted an 11.74 per cent decline in consolidated net profit to Rs 2,694.2 crore in the third quarter of the current fiscal.
HCL Technologies on Friday reported a 6.2 per cent increase in consolidated net profit at Rs 4,350 crore, highest-ever on a quarterly basis, in the three months ended December 2023 on the back of growth in both services and software businesses.