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"In the week, the domestic market channelled through rough terrain. The downward revision in Indian GDP growth estimates to 6.4% for FY25 has cast a shadow over the economy's momentum. Furthermore, Q3 corporate earnings projections remain modest, which is not helping investor sentiments. This, combined with persistent selling by FIIs due to high valuations, especially in broader markets and global headwinds, has weighed heavily on the markets. The strengthening of the dollar, along with rising US bond yields, has also impacted investor confidence. However, a glimmer of hope emerged as the initial set of results from the IT sector showed promise.

Looking ahead, corporate earnings will be in the spotlight, with major companies, including IT giants, releasing their Q3 results. Macroeconomic data, such as India's inflation rate and industrial production figures, will also play a crucial role in shaping market direction. On the global front, updates on the U.S. economy, particularly labour market data and inflation trends, may impact FII flows. A spike in crude oil prices will add inflationary pressure. Overall, market volatility is expected to remain as investors react to a mix of earnings, macroeconomic data, and global cues."

 

 

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