Macro data, Q1 show to take spotlight for markets this week

New Delhi: IIP and inflation data, quarterly earnings from blue-chips TCS and Infosys and progress of monsoon rains will be key determinants for the stock market this week, say experts.

"Quarterly earnings, progress of the monsoon and trend in global markets will dictate sentiment this week. With the start of results season for June 2016, focus will shift to quarterly earnings and management commentary," said Vijay Singhania, Founder-Director, Trade Smart Online.

Data for industrial production for May are due on Tuesday. On the same day, inflation based on the consumer price index (CPI) for June is scheduled to be released.

June wholesale price index (WPI) inflation is slated for release on Thursday.

"The earnings season has already begun, but the biggies would only start to report starting this week. For the next 4-6 weeks, Q1 FY17 results would be an important data point investors would look for," said Pankaj Sharma, Head of Equities, Equirus Securities.

Market frittered away last week's gains mainly due to profit-booking which pulled down the BSE Sensex 18 points and the NSE Nifty 5 points.

"This week, all eyes will be on inflation and IIP figures. CPI and IIP numbers will be announced on July 12 and WPI will be announced on July 14," said Nirdosh Gaur, MD & CEO of Discount Broking firm, Moneypalm.

"Corporates for the first quarter of 2016-17 already started announcements from the last week and this week, market will watch a few big corporate results and will make its mood according to these result announcements."

IT majors Tata Consultancy Services and Infosys will come out with their results on July 14 and July 15, respectively.

"Initially on Monday, markets will react to the outcome of the crucial US non-farm payroll data for June 2016 announced last Friday," Singhania added.

The data showed that there was sharp rebound in hiring by US employers for June.

"On fundamental factors, market will be watching out for start of earnings season and progress of the monsoon. Positive developments on either of factors will create positive vibes," Reliance Securities said in a note.