Markets Ahead: Q3 Earnings, Budget 2025 Anticipation, Global Trends To Influence Investors

Quarterly earnings, global trends, and trading activity of foreign investors will drive the sentiment in the equity markets this week, analysts noted. The earnings season for the third quarter is set to begin with TCS announcing its financial results for the October-December quarter on Thursday this week.

Further, experts said that investors will also be on the lookout for macroeconomic data announcements and the trend in currencies specifically, the rupee and dollar in the market, reported PTI.

Elaborating on the lineup for the week, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, noted that the earnings season for Q3FY25 will begin this week. Big names in the IT industry and prominent players in the financial sector will release their results for the December quarter. These include TCS and Tata Elxsi, both scheduled to release their Q3 results on January 9, 2025.

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“Investors will closely monitor individual stock performances. Following the earnings season, markets’ focus is expected to shift towards the upcoming Union Budget and the policy decisions of the Trump 2.0 administration,” Gour stated.

He pointed out that foreign institutional investors (FIIs) have remained net sellers, while domestic institutional investors (DIIs) have been majorly buying in the market. This ‘tug-of-war’ between the two sides is expected to impact the direction of the markets this week, the expert said.

Ajit Mishra, SVP, Research, Religare Broking Ltd, said, “Looking ahead to the second week of the year, several key events are likely to influence market sentiment. The earnings season begins with IT major TCS, a key trigger as any signs of improvement in Q3 numbers could reverse the ongoing trend of FII outflows. Additionally, a host of economic data, including HSBC services PMI, and IIP, will be closely monitored for further cues.”

Notably, the domestic Indian currency depreciated 4 paise to settle the session at a record low of 85.79 against the US dollar on Friday. Further, the BSE Sensex plunged more than 700 points to close the session at 79,223.11, while the NSE Nifty50 ended trading slightly above 24K, taking a fall of close to 200 points.