India's Market Movement Hinges On Corporate Earnings, Covid-19 Trend: Analysts
The BSE signage is seen through foliage in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)

India's Market Movement Hinges On Corporate Earnings, Covid-19 Trend: Analysts


Indian equities will be driven by a host of factors like corporate earnings, coronavirus cases trend and geopolitical developments this week, according to analysts.

Market participants will also keenly watch the progress of monsoon, with experts saying that the farm sector revival will play a key role in lifting the coronavirus-hit economy.

"With no major event, the ongoing earnings season and global cues will continue to dictate the market trend. Besides, the progress of monsoon will also be closely watched," Ajit Mishra, vice president - research at Religare Broking, said.

Globally, the rising coronavirus infections and geopolitical tensions have created uncertainty on the economic recovery front.

With India's Covid-19 cases fast approaching the 11-lakh mark, the highest after the U.S. and Brazil, and the death toll nearing 27,000, participants are expected to tread cautiously.

At global level, confirmed Covid-19 cases have crossed 1.4 crore and deaths totalled about 6 lakh.

Markets globally will closely follow developments on the trade and political level between the U.S. and China, according to analysts.

"We would continue witnessing stock-specific action as the earnings season unfold. Though the near-term momentum looks positive, we would advise traders to be cautious, given flaring U.S.-China trade relations, persistent rise in virus cases and implementation of fresh lockdowns in parts of the country," said Siddhartha Khemka, head - retail research, Motilal Oswal Financial Services Ltd.

HDFC Bank will remain in focus on Monday after having announced its June quarter earnings on Saturday.

The lender reported a 19.6% rise in its standalone net profit at Rs 6,658.62 crore for April-June 2020 period, while its income rose to Rs 34,453.28 crore.

Other major companies to announce their quarterly results this week are Axis Bank, Bajaj Finance Ltd., Hindustan Unilever Ltd., Bajaj Auto Ltd. and ITC Ltd.

"Market participants will closely track the development related to Covid vaccine, the rising infection of coronavirus, development on economic activities, corporate earnings and U.S.-China relationship," said Sumeet Bagadia, executive director, Choice Broking.

On weekly basis, the Sensex gathered 425.81 points, or 1.16%, and the Nifty gained 133.65 points, or 1.24%.

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