Q1 results, global clues shaping Indian markets trend this week: analysts

Quarterly earnings and global developments would be the main factors driving stock markets into the upcoming holiday week, analysts said.

Movements of foreign funds will also play a crucial role in deciding the trend, they added.

Markets will remain closed for Muharram on Tuesday.

“This week the market will be looking at the latest set of Q1 results where on Monday it will react to SBI, HPCL and BPCL results while Adani Ports, Bharti Airtel, PowerGrid, Coal India, Eicher Motors, Hindalco, Grasim, Hero Motocorp, LIC , ONGC and Bata India will be other standout earnings throughout the week,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

The country’s largest lender, State Bank of India (SBI), on Saturday reported a 7 percent fall in standalone net income to Rs.6,068 billion for the first quarter of the current fiscal year on mark-to-market (MTM) losses .

Hindustan Petroleum Corporation Ltd (HPCL) on Saturday reported its best-ever quarterly net loss of Rs.10,196.94 billion in the June quarter as a freeze on gasoline and diesel price revisions shattered record margins at refiners.

Global clues will be important as geopolitical concerns mount, while both domestic and global macro numbers will play an important role, Meena added.

India will release its CPI and IIP data on August 12th, while US inflation figures will be released on August 10th.

“This week is a holiday-shortened week and participants will closely monitor global markets and domestic factors, namely earnings and macroeconomic data, for clues.

“Further escalation in China-Taiwan tensions could lead to volatile swings. On the data front, we have IIP and CPI inflation planned for August 12,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

The 30-part BSE benchmark Sensex rose 817.68 points, or 1.42 percent, last week.

It was the third straight week of gains for Indian equity markets thanks to continued buying by FIIs. However, volatility has risen to higher levels as the market is somewhat overbought, added Swastika Investmart’s Meena.

Apurva Sheth, Head of Market Perspectives, Samco Securities, said: “At a macro level, this week is expected to be packed for investors in the United States and China. At home, market participants will turn to Indian CPI prints for clues on where the economy is headed.” With monetary policy overhang now behind us, China-Taiwan geopolitical tensions will be in focus as any flare-up in in the region can lead to panic situations worldwide, said Amol Athawale, Deputy Vice President – ​​Technical Research, Kotak Securities GmbH

(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)

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