Q4 earnings, GDP and PMI data, global trends will be the main factors that will drive the stock market in the end of May and onset of June.
The coming week on the dalal street of stock market will witness major Q4 earnings reports of companies including Adani Ports, IRCTC. India is also set to release the FY 23 GDP and the Purchasing Manager’s Index (PMI) data. Apart from these, the debt ceiling deal which is to be passed in the United States this week will also be a driving factor including global market trends.
On friday, Sensex and Nifty both gained around 1% each, with sense closing at 62501.59 while nifty closing at 18,499.35. Whether the markets will be able to continue their winning streak eyeing for an all time high will highly depend on these factors.
Q4 earnings and automobiles sales report
Around 1700 companies are set to announce their quarterly earnings this week. These include Adani transmission, IRCTC, Apollo Hospitals, Torrent Powers, Rail Vikas Nigam, Mankind Pharma and others. The following will be the last leg of the earnings season. Markets have received mixed march quarter earnings with the tech stocks being the biggest disappointment due to less business in the U.S. and Europe.
Apart from this, many automobile companies will start announcing their sales figures starting from 1st June. The automobiles sector has witnessed less volume growth so far.
Debt ceiling and Global Market Trends
The debt ceiling bipartisan bill will also be looked out by investors as the deal gets into its final phases. The U.S. president Joe Biden and Republican house speaker Kevin McCarthy have come to an agreement in principle to increase the debt ceiling with some spending cuts.
The S&P 500 index edged up by 0.4% along with 0.6% rise in Nasdaq futures. The global markets saw a rise last week including E.U. stocks making highest one day gains in 2 months and the nvidia triggered A.I. rally of U.S. indices. The debt ceiling deal has made investors optimistic about the market trends.
The bipartisan debt ceiling bill is yet to pass in the republican controlled House of Representatives and the democrats controlled senate. U.S. treasury secretary Janet Yellen has extended the debt default deadline to June 5. President Biden and McCarthy both have urged members to pass the bill quickly which is likely to be voted on Wednesday.
GDP and PMI data
India is set to release the GDP data of last quarter of F.Y.22-23 and the yearly GDP data of F.Y. 23. Which is expected to be out on May 31.
The GDP in the quarter of January to March 2023 is expected to be at 5.5%. Analysts forecast the yearly GDP to surpass 7.0% of earlier projected growth rate.
The GDP in the last quarter of F.Y. 22-23 is expected to be trailed down due to global economic slowdown and the global banking sector crisis.
The Reserve Bank of India (RBI) had projected the Q4 real GDP at 5.1% earlier this month. RBI expects the GDP growth of the upcoming quarter at 7.1% driven by private consumption, normal monsoon and ease in inflation.