As markets open, investors to look for Q4 earnings: Here are the key factors

As markets open this week, investors will look for the crucial Q4 earnings data released by top corporates and the US economy's report card.

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This week will be critical for the Indian financial markets as the fourth quarter’s (Q4) earnings of the financial year (FY) 2022-23 will be released by corporates. The Q4 earnings of giants will start with Tata Consultancy Services (TCS) publishing its data on April 12th.

With the start of the Q4 earnings season, traders will be watching the results of the TCS as well as that of Infosys and the HDFC Banks, as they will release their data on April 13th and April 15th, respectively.

On April 12th, information about the Index of Industrial Production (IIP) for February 2023 will be made public. Compared to market expectations of a 5% growth, India’s IIP rose 5.2% year-over-year (y-o-y) in January 2023, up from a 4.3% gain in December.

The Consumer Price Index (CPI) March inflation figures will be revealed on the same day. In February 2023, India’s CPI spiked by 0.17 percentage points compared to the prior month. On April 14th, market players will also look at export-import and wholesale price inflation statistics.

Apart from Q4 earnings, this week will be crucial for investors as they will come across the US’s economic reports, starting with the Core Inflation Rate and Federal Open Market Committee Minutes on April 12th, and the Producer Price Inflation and Initial Jobless Claims on April 13th.

On April 14th, investors will be able to have a look at the US’s retail sales, industrial production, import-export, Michigan Consumer Sentiment, and Baker Hughes Total Rig Count data. These reports will shape investor sentiments for the present quarter (Q1) of FY 2023-24.

In the present global scenario, when pre-existing economic turmoil exists in the crisis-ridden US, India can witness a solid upward movement in the market. A strong relationship with Russia, which has resulted in cheaper oil imports for India, will complement the fundamental sentiment of retail buyers.

Although it is to conclude that investing is the art of probability, one can come to any conclusion about the Q4 earnings of the corporates and the state of the US economy once the market opens.

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