First quarter to guide Indian equity

Results and derivatives expiry expected to a play key role in the coming week

Ongoing quarterly results, along with derivatives expiry and global cues will guide the key equity markets during the upcoming week, market observers said.

Analysts pointed out that the Parliament’s monsoon session, as well as the direction of foreign funds’ flow will be the other major themes for the upcoming week.

“Markets will continue to be influenced by stock-specific news and corporate action such as buy-backs. Earnings too will be at the centre stage,” Devendra Nevgi, Chief Executive of Zyfin Advisors, said. “The global risks emanating from the US political turmoil can influence the domestic market sentiments too.”

Premium valuation

According to Vinod Nair, Head of Research, Geojit Financial Services, the quarterly earnings growth may not match the current premium valuation due to a tepid start to the results season.

“Currently, investors are giving more weight to the prevailing positive macros which are maintaining a positive vibe in the market,” Nair explained. “However, there is a chance of consolidation in the near-term due to ongoing quarter results; US Fed’s policy and the Opec meeting next week.”

Companies like ICICI Bank, HDFC Bank, Axis Bank, HDFC, HCL Tech, Yes Bank, Maruti Suzuki, ONGC, Hero Motocorp and Dr Reddy’s Lab are expected to announce their quarterly results in the coming trade week.

“Telecom will be a sector to watch out for in the coming weeks on their reaction and response on ... JioPhone,” Devendra Nevgi, Chief Executive of Zyfin Advisors, said.