Earnings, global trends to guide stock markets this week: Analysts

Stock markets will be guided by the ongoing quarterly earnings season and global factors, analysts said, adding that foreign fund movement would also play a crucial role in dictating the terms.

Besides, movement of the rupee and trend in international oil benchmark Brent crude will also influence trading, they added.

“Market will look for direction from Q2 earnings and global cues. This week many financial and cement companies will come out with their Q2 results. Global markets are quite volatile, which may lead to volatility in our market as well,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

In terms of global factors, macro numbers from the United States and China will be important, Meena said.

Movement of the US bond yields, dollar index and crude oil will be other global factors to watch out for, Meena added. It will be important to see institutional flows from here on.

“Earnings and global cues will dictate the trend this week. First, participants will react to HDFC Bank’s number in early trade on Monday.

“Going ahead, we have some prominent names like ACC, Ultratech Cement, IndusInd Bank, Axis Bank, Asian Paints, Bajaj Finance, ITC and Hindustan Unilever who will announce their numbers along with several others,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

HDFC Bank on Saturday reported a 22.30 per cent jump in its consolidated net profit for the September quarter at Rs 11,125.21 crore, helped by a reduction in money set aside for bad loans.

Apurva Sheth, Head of Market Perspectives, Samco Securities said, “Quarterly results of companies will occupy the centre stage. D-street will be interested to hear the management commentary about future earnings growth trajectory.”

According to Meena of Swastika Investmart, the Indian equity markets have been in a range for the last three weeks.

Last week, the Sensex shed 271.32 points or 0.46 per cent, while the Nifty fell 128.95 points or 0.74 per cent.

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