Q4 results, macro-data to guide equity markets’ movements

Upcoming fourth quarter earning results, along with macro-economic data points and global geo-political tensions are expected to determine the trajectory of Indian equities markets during the week starting April 10. "Markets next week would focus on the upcoming earnings season," Devendra Nevgi, Chief Executive of Zyfin Advisors, told IANS.

"Since markets have moved up in recent weeks driven by FPI (foreign portfolio investors) flows and PE (priceto-earning) ratio expansion, the earnings growth support is needed for the markets to sustain the uptrend."

IT major Infosys is expected to be the first blue chip firm to come out with its Q4 results on April 13. Apart from the Q4 results, investors will also be looking forward to the upcoming macro-economic data points such the Index of Industrial Production (IIP) figures. India's Central Statistics Office (CSO) will release the macro-economic data points - IIP and Consumer Price Index (CPI) -- during the upcoming week. The CPI data will be followed by the release of Wholesale Price Index (WPI) by the Ministry of Commerce and Industry.

"Investors will closely follow the domestic economic data like CPI and IIP, while price movement of Indian rupee against USD will be the crucial factor for market sentiments next week," pointed out Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

Last week, the Indian rupee appreciated by 56 paise to 64.29 against a US dollar from last week's close of 64.85 to a greenback.It is expected that the continuing appreciation in Indian rupee will hurt India's export competitiveness and USD earnings of corporates in the IT sector.