FIIs remained net sellers of equities worth over Rs 500 crore in week gone by, data showsMumbai:Key inflation data and ongoing quarterly earnings season are expected to determine movement of equity indices in week starting January 14, say experts.The sharp deceleration in rate of growth in country's industrial output is also expected have an impact on investor sentiment.Additionally, global cues such as concerns over rise in crude oil prices and trade talks between US and China, along with direction of foreign fund flows, will affect risk-taking appetite of investors, they add."Going forward, market will closely watch guidance and management commentary of companies coming out with their earnings," DK Aggarwal, CMD, SMC Investments Advisors, told news agency IANS."Besides, third quarter results, macroeconomic data, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), movement of rupee against dollar and crude oil price movement will dictate trend of market going forward."In coming week, companies such as Reliance Industries, Cyient, Hindustan Unilever, Rallis India, ICICI Securities, Multi Commodity Exchange of India, Mindtree, SBI Life Insurance Company and Wipro are expected to announce their earnings for quarter ended December 31.According to Sahil Kapoor, chief market strategist, Edelweiss Investment Research: "The breadth of market suggests that underlying strength of broader market is still absent.
NSE500 Index which is much broader than Nifty is still trading below its 200DMA.""As we move into thick of result season index is likely to see a break of this trading range.
If index were to trade below 10,700 mark a fall towards 10,400 to 10,500 range is likely and a retest of 2018 lows would also rise in probability."Apart from Q3 results, investors will look out for upcoming macroeconomic data such as CPI (Consumer Price Index), Wholesale Price Index (WPI) andBalance of Trade.The Central Statistics Office (CSO) is slated to release macroeconomic data of CPI (Consumer Price Index) on Jan 14.Besides, a volatile rupee against US dollar might hamper market's northward moves."The rupee has got concerns from rising crude and risk of fiscal slippage in poll bound nation any breach above 70.60 levels can take it to 71.50 levels.
On lower side 69.80 can be seen if any softness in crude is seen," said Sajal Gupta, head of forex and rates, Edelweiss Securities."Any positive development on resolution of global trade concerns can be a positive backdrop for rupee to appreciate in coming week."On a weekly basis, rupee weakened by 77 paise to 70.49 against dollar.In addition, direction of foreign fund flows will be another major theme for equity market.According to provisional data released by stock exchanges, FIIs remained net sellers to tune of over Rs 500 crore during week ended January 11.Last week, key equity indices -- Sensex and Nifty-- rose despite a rise in global crude oil prices and heavy outflow of foreign funds, partly owing to an ease in liquidity and hopes of US-China trade war being resolved.Consequently, Sensex gained 314.74 points, or 0.88 per cent, to close at 36,009.84 points.Similarly, Nifty closed trade at 10,331.60 points -- up 67.6 points, or 0.63 per cent, to settle at 10,794.95.