Analysts Expect These Factors To Drive Markets In Truncated Next Week

Equity indices will keep an eye on the movement of oil prices, rupee as well as the ongoing earnings season for further cues in a holiday-shortened week ahead, analysts say.

Share markets will have only three trading days this week with Monday and Wednesday being holidays due to general elections in Mumbai and Maharashtra Day, respectively.

“This week it will be crude oil that will be eyed as India remains one of its biggest importers. The movement of rupee is key. That could have some serious dent on positive sentiments we have seen in last few weeks,” said Mustafa Nadeem, CEO of Epic Research.

Economic events like infrastructure output data will be eyed along with manufacturing PMI numbers, he added.

“All in all one also needs to remember we are entering final few phases of elections voting and next month India will have its new government. This is very important as volatility is the wind that will be blowing throughout this month,” Nadeem said.

Participants will continue to track the ongoing quarterly results season and general elections, which will keep setting the tone for the markets over the next few weeks, experts said.

PMI data for the manufacturing sector is due this week. Auto scrips would also remain in focus amid monthly sales data announcement.

Kotak Mahindra Bank Ltd., Tata Power Ltd., Hindustan Unilever Ltd. and Federal Bank Ltd. are among the major companies scheduled to announce their results this week.

The BSE Sensex rallied 336 points to reclaim the 39,000-level on Friday, capping off a volatile week where investors grappled with flaring oil prices and sudden sell-offs at higher levels.

Trading received a boost Friday after global oil prices slipped below the 75 dollar per barrel mark.