Earnings, global trends to drive stock markets

Market is likely to see some consolidation after last two week’s selling as Nifty-50 corrected more than 600 points to 22,055.20 and the Sensex by more than 2,000 points to 72,664.47.

However, volatility is likely to continue as uncertainty on the political front will weigh on market participants.

As the general election is progressing the market will be analysing the voting patterns and polling data more than economic data for knowing market direction.

After last week’s selling several sectors including banks, metals look ready for a reversal of trend, analysts remain bullish on auto sector while consolidation in the FMCG sector is likely to end on better prospects on above normal monsoon forecast.

“Bank Nifty has virtually completed its corrective move and is set to reverse from the lower end. During the week, the metal sector has also felt the heat of the selling but considering an overall uptrend, the ongoing correction will be assumed as a strong buying opportunity,” said Aditya Gaggar, director-Progressive Shares.

“In the data-hectic week ahead, investor attention will be focused on the release of India and US consumer price index data, Europe and Japan’s GDP releases, and the Fed chair speech. Furthermore, the next set of Q4 results will also attract market sentiment,” said Vinod Nair, head-Research, Geojit Financial Services.

FPIs have net sold equities worth `17,082.71 crore in May month so far.

“This selling pressure overshadowed strong performance in global markets, keeping domestic indices under pressure throughout the week,” Santosh Meena, head- Research, Swastika Investmart said.