Q1 earnings, global indices to set Indian markets trend this week: analysts

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Quarterly earnings and global developments would be the main factors boosting stock markets in the shortened holiday week ahead, analysts said.

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

Markets will remain closed on Tuesday for Muharram.

“This week the market will be dealing with the latest batch of Q1 results where it will react to results from SBI, HPCL and BPCL on Monday, while Adani Ports, Bharti Airtel, PowerGrid, Coal India, Eicher Motors, Hindalco, Grasim, Hero Motocorp, LIC, ONGC and Bata India will be other big earners during the week,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

The country’s biggest lender, the State Bank of India (SBI), on Saturday reported a 7% fall in its standalone net profit to Rs 6,068 crore for the first quarter of the current financial year due to losses of market (MTM).

Hindustan Petroleum Corporation Ltd (HPCL) reported its highest ever quarterly net loss of Rs 10,196.94 crore in the June quarter on Saturday as a freeze in petrol and diesel price revisions wiped out record refining margins.

Global indexes will be important as geopolitical concerns increase, while national and global macroeconomic figures will play an important role, Meena added.

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

“This week is cut short during the holidays and participants will be watching global markets and domestic factors, namely earnings and macro data closely for clues.

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

BSE’s 30-stock benchmark Sensex was up 817.68 points or 1.42% last week.

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

Apurva Sheth, Head of Market Outlook at Samco Securities, said: “From a macro perspective, this should be a busy week for investors. Global markets are expected to dance to the beat of inflation figures to be released by the United States and China. Back home, market participants will look to India’s CPI index for clues on the economy’s trajectory. With the monetary policy overhang now behind us, the geopolitical tension between China and Taiwan will be at the center of attention, as any flare-ups in the region could lead to panic situations across the world, Amol Athawale said. , Assistant Vice President – Technical Research, Kotak Securities Ltd.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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