Stock markets will be guided by the ongoing quarterly earnings season and global factors, analysts said, adding that the movement of foreign funds would also play a crucial role in dictating conditions.
Additionally, the movement of the rupee and the trend of the international benchmark Brent crude oil will also influence the trade, they added.
“The market will be looking for direction from Q2 earnings and global signals. This week many financial and cement companies will release their Q2 earnings. Global markets are quite volatile which can also lead to volatility on our market,” 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.
Movements in US bond yields, the dollar index and crude oil will be other global factors to watch, Meena added. It will be important to see the institutional flows from now on.
“Earnings and global indices will dictate the trend this week. First, participants will react to the HDFC Bank number in early trade on Monday.
“Going forward, we have big names like ACC, Ultratech Cement, IndusInd Bank, Axis Bank, Asian Paints, Bajaj Finance, ITC and Hindustan Unilever who will be announcing their figures along with several others,” said Ajit Mishra, Vice President – Research, Religare Broking Ltd.
HDFC Bank on Saturday announced a 22.30% increase in its consolidated net profit for the September quarter to Rs 11,125.21 crore, helped by a reduction in cash set aside for bad debts.
Apurva Sheth, head of market outlook at Samco Securities, said: “Companies’ quarterly results will take center stage. D-street will be interested to hear management’s comments on the future earnings growth trajectory.
According to Swastika Investmart’s Meena, Indian stock markets have been in a range for the past three weeks.
Last week, the Sensex lost 271.32 points or 0.46%, while the Nifty fell 128.95 points or 0.74%.
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