Factors that will guide the markets this week

Corporate earnings from blue-chips like HDFC Bank, ICICI Bank, Donald Trump's swearing-in as the US President, and trading activity of foreign investors are the key factors to drive equity markets this week, analysts said.

Trump will be sworn in as the US president for a second term on Monday.

This week, several key Nifty-50 companies, including BPCL, HDFC Bank, Hindustan Unilever, Dr Reddy's, UltraTech Cement, JSW Steel and ICICI Bank are scheduled to announce their financial results.

Adding to the market's complexity is the ongoing battle between Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs).

"As the earnings season progresses, investors are expected to shift their attention to the upcoming Union Budget, which will outline the government's economic and fiscal roadmap for the year.

"Market participants will closely watch for policy measures, fiscal allocations, and growth initiatives that could influence key sectors and overall investor sentiment," Pravesh Gour, senior technical analyst, Swastika Investmart Ltd, said.

On the global front, all eyes are on Donald Trump as he prepares to be formally inaugurated as the 47th president of the United States of America on January 20, marking his return to the White House, he added.

Movement of global oil benchmark Brent crude and the rupee-dollar trend would also influence trading in the markets, experts said.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, "Domestic equities are expected to remain volatile with stock-specific action as the corporate earnings season for the third quarter is in full swing.

"The December quarterly results together with management commentary will be closely tracked by investors.

"Donald Trump's swearing-in as the 47th president of the United States on Monday, and the following policy announcements will have a strong impact on the global market sentiments."

Last week, the BSE benchmark tanked 759.58 points or 0.98 per cent, and the Nifty declined 228.3 points or 0.97 per cent.

"Looking ahead, we anticipate the market to maintain a cautious tone this week due to several domestic and global factors. Key corporate earnings from heavyweights such as Hindustan Unilever, HDFC Bank, ICICI Bank, BPCL, and Hindustan Petroleum are slated for release, which will be closely monitored.

"Additionally, the swearing-in of Donald Trump on January 20 is expected to draw significant attention, especially for any initial announcements on trade tariffs and their implications for global trade," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.