Quarterly Earnings, Global Trends Key Drivers For Market This Week: Analysts
Men look up at an electronic ticker board that indicates stock figures at the BSE in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Quarterly Earnings, Global Trends Key Drivers For Market This Week: Analysts

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Stock markets this week will be steered by the ongoing quarterly earnings season and global trends with the focus shifting to the U.S. elections, analysts said.

Markets may also witness volatility amid derivatives expiry this week.

"Going ahead, market is likely to remain in a tight range as the U.S. election draws near. We expect more stock-specific action given the prevailing earnings season and mixed global cues. Apart from the U.S. election, investors would watch out for ECB and Bank of Japan monetary policy statement and U.S. GDP data this week," said Siddhartha Khemka, head – retail research, Motilal Oswal Financial Services Ltd.

All eyes are on the U.S. markets for updates on the stimulus package and upcoming presidential elections, Ajit Mishra, vice president (research), Religare Broking Ltd., said.

"News on Covid-19 cases in Europe will also remain on the participants' radar. Volatility usually remains high in stocks during the earnings and we're seeing a similar trend," Mishra said.

Investors would monitor quarterly earnings data from frontline companies like Kotak Mahindra Bank, Bharti Airtel Ltd., Tata Motors Ltd., Axis Bank Ltd., Hero MotoCorp Ltd., Bank Of Baroda, Maruti Suzuki India Ltd., IndusInd Bank and Reliance Industries Ltd.

"We believe markets, both global and domestic will focus on the upcoming US elections and expect volatility to spike in the near term," said Vinod Nair, head of research at Geojit Financial Services.

On a weekly basis, the Sensex rallied 702.52 points, or 1.75%. Other major factors like rupee-dollar trend and Brent crude movement will also be crucial for market direction.

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