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Below the Quote on Equity markets from Dr Vikas Gupta, CEO and Chief Investment Strategist , OmniScience Capital 

Recap of the Week: A Volatile Start

The first week of 2024 presented a deceptive appearance of market decline, but major indexes like Nifty 50 and Sensex concluded flat. Interestingly, midcap and smallcap indexes saw a notable uptick of 1.7% to 2%.

The Indian economy demonstrated resilience, reflected in the Nikkei S&P Global Manufacturing PMI and Nikkei Services PMI at 54.9 and 59, respectively. Forex reserves surpassed $623 billion, and NSO estimates projected a robust 7.3% real GDP growth for FY 2024.

Contrastingly, the S&P 500 dipped by nearly 1%, while the S&P 400 midcap and S&P 600 smallcap suffered declines of over 3% and 5%, respectively.

The US market displayed intriguing behavior. Positive indicators like ADP Nonfarm and Employment numbers clashed with Mr. Market's expectations of imminent Fed rate cuts, causing unease.

Looking Forward to the Next Week:

Indian Markets:

Domestic data on bank loan growth, deposit growth, and CPI are anticipated.
Earnings week kickstarts with major tech players (TCS, Infosys, HCL Tech, Wipro) providing insights into deal pipelines and US client responses.
Key earnings reports from HDFC AMC, HDFC Life Insurance, and Avenue Supermarts to shed light on financial services and retail consumption.
US Markets:

Attention on CPI numbers from the Bureau of Labor Statistics and bond auctions (3-year, 10-year notes, 30-year bonds) to gauge market expectations on Fed rate cuts.
 

Big 4 moneycenter banks (JP Morgan, Bank of America, Wells Fargo, Citigroup) and BlackRock reporting, offering valuable insights beyond sell-side strategists' views.

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