The Bombay Stock Exchange building stands in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Earnings, Global Cues To Dictate Market Trend, Say Experts

Corporate results season, movement of the rupee and global cues will set the tone for the domestic equity market this week, experts said.

"The market will closely watch supervision and management commentary of the companies coming out with their earnings," said Mustafa Nadeem, the chief executive officer at Epic Research.

Indices may also react to results posted over the weekend. Wipro Ltd. announced its results after market hours on Friday, while HDFC Bank on Saturday reported a 20.3 percent growth in net profit to Rs 5,585.9 crore for the December quarter.

Kotak Mahindra Bank Ltd., InterGlobe Aviation Ltd., Bank of Maharashtra, Yes Bank Ltd. and Maruti Suzuki India Ltd. are among the major companies set to announce their results this week.

"In terms of the third quarter results, most IT companies have beaten the estimates in terms of top-line growth. Also, the commentary from IT companies management has been positive, so the momentum in top-line growth is likely to continue albeit, at the cost of margins,” said Viral Berawala, chief investment officer, Essel Mutual Fund.

"Other Nifty companies that reported results this week also have seen a neutral to positive reaction by the analysts, indicating that the start of the results season has been positive," he added.

According to analysts, global trade issues would also impact the trend, while the lack of major triggers in the domestic market could see range-bound movement in the near term. Also, trend in crude oil prices, rupee movement and investment pattern by overseas investors would influence trading sentiment, they added.

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During the last week, the BSE’s key index Sensex gained 1 percent to close at 36,386.61 on Friday.