Market Outlook: Q4 results, PMI and FII data key triggers for next week

The market outlook for next week will be guided by several domestic and global factors such as Q4 results, minutes of RBI's Monetary Policy Committee meeting, Purchasing Managers Index (PMI) and Foreign Institutional Investors (FII) data, which could steer market direction and influence investor sentiment.

During April 21-25, Tata Investment Corporation, HCL Tech, Tata Communications, Bajaj Housing Finance, Axis Bank, Hindustan Unilever and RBL Bank will release their Q4 FY25 results.

Bajaj Broking Research said, "In India, April 23 will see the release of the S&P Global Manufacturing and Services PMI data, providing a real-time gauge of business activity across the industrial and service sectors. Alongside these, the RBI Monetary Policy Committee (MPC) meeting minutes will be published, giving markets deeper insight into the central bank's policy stance and inflation outlook."

On the global front, the same day - April 23 - will feature the S&P Global Manufacturing and Services PMIs, reflecting the health of the American economy's key sectors. This will be followed by the Initial Jobless Claims report on April 24, a critical indicator for the labour market.

"Altogether, this data-heavy week could add to market volatility and shape monetary policy expectations going forward," the broking firm added.

Despite the two-day holiday, the stock market surged over 4 per cent last week. Nifty rose 1,023 points or 4.48 per cent to close at 23,851 and Sensex rose 3,395 points or 4.52 per cent to close at 78,553.

Banking stocks led the rally in the market. Nifty Bank closed at 54,290 with a gain of 3,287 points or 6.45 per cent.

The announcement of a temporary pause on tariffs by the US and prospects of negotiations with other countries have also contributed to this relief rally. Furthermore, the RBI's 25 bps rate cut on April 9, which brought the repo rate down to 6 per cent, along with a shift in its stance from "neutral" to "accommodative", added fresh momentum to the equity markets as investors priced in further monetary easing.

Over the last three trading sessions, foreign portfolio investors have purchased over $1 billion worth of Indian equities after a prolonged selling streak.

Vishnu Kant Upadhyay, AVP - Research & Advisory, Master Capital Services, said, "The market is now approaching a key resistance zone between 23,800 and 24,000. A breakout above this level could propel the index towards 24,800."

"Buying on declines remains a viable strategy as long as the index stays above its key moving averages," he added.