NEW DELHI: A host of triggers are likely to help benchmark indices move out of rangebound trading next week.
While quarterly earnings will drive stock-specific actions, economic data such as March factory output and manufacturing growth prints, fifth phase of elections and progress of US-China trade talks will be keenly followed.
Oil prices, rupee-dollar exchange rate and foreign flow trend will also be tracked keenly.
For the week gone by, BSE Sensex fell 104.07 points, or 0.27 per cent, to 38,963, while NSEs Nifty50 fell 42.40 points, or 0.6 per cent, to 11,712.
Here are key factors to watch out for next week: US-China trade dealA Chinese delegation will arrive in Washington on Wednesday (May 8) to discuss the proposed trade deal.
Donald Trump on Friday said the trade negotiations with China were going on pretty well.
The comment by the US President came after White Houses chief of staff Mick Mulvaney earlier this week said the trade dispute with Beijing will likely be resolved one way or the other within the next two weeks.
A report by CNBC quoting sources suggested that a trade deal could be announced by Friday this week.
Q4 earningsA total of 216 companies will report March quarter earnings in the coming week, BSE data suggests.
Bharti Airtel, ICICI Bank and Marico will declare results on Monday, Vedanta, Escorts and CEAT on Tuesday, Titan Company and Dhanlaxmi Bank on Wednesday, HCL Tech and Apollo Tyres on Thursday and SBI, LT, Eicher Motors and Allahabad Bank on Friday.IIP, manufacturing growth data On Friday, investors would like to know whether the industrial output growth improved in March from a 20-month low of 0.1 per cent hit in February.
The factory output last month was hurt mainly due to a contraction in the manufacturing sector.
Therefore, the numbers on manufacturing output to be released the same day will also be watched.
Meanwhile, Nikkei India PMI Services data for April will be released on Monday.
The three data prints will give cues on the state of the economy.
5th phase of electionsThe fifth phase of voting in the general elections will take place on Monday.
Voting will happen in 51 Lok Sabha constituencies across seven different states.
After four phases of elections, the voting percentage stood at 67 per cent, comparable with 67.6 per cent reported in 2014.
Equirus Securities said flattish turnout has historically proved to be good for an incumbent party.
Global economic releasesAmong global cues, investor will watch Euro zones retail sales figures on Monday, Chinas foreign reserves data on Tuesday, its trade data on Wednesday and CPI and PPI data on Thursday, and US CPI numbers and Baker Hughes oil rig count on Friday will be watched keenly.Oil, rupee movementInvestors are keenly waiting to see if the recent fall in crude oil prices was temporary.
A drop in crude prices will help the rupee appreciate or vice versa.
Data suggests Brent crude futures settled at $70.85 a barrel on Friday, down 2.6 per cent for the week, snapping a five-week rising streak.
US crude futures on the other hand fell around 3 per cent for the week to $61.94 a barrel.Foreign flowsForeign flows into India were pretty strong at Rs 72,394 in the last three months.
That said, inflows in April at Rs 21,193 crore were down 37 per cent from Marchs record flows of Rs 33,980 crore.
In May so far, FPIs have pulled out Rs 367.30 crore from domestic equities.