Sentiment bullish, indices recover

The start of the New Year has injected fresh confidence into equity markets, visible through improved participation across the broader market and selective accumulation in mid-cap stocks.

- Motilal Oswal Wealth Management MUMBAI

Optimism around forthcoming Q3 earnings and expectations of supportive policy measures ahead of the Union Budget have further strengthened sentiment. We believe this positive undertone is likely to persist, with Indian equities expected to remain firm during the week. Market attention will centre on ongoing pre-quarterly business updates, followed by the commencement of the earnings season, beginning with TCS announcing its results on 12th January. On the global macroeconomic front, investors will track Manufacturing and Services PMI readings from both the US and India, along with key US labour market indicators such as Non-farm Payrolls, JOLTS Job Openings, and the Unemployment Rate.