INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Indian equity benchmarks Sensex and Nifty put up a good show last week, as both the key indices logged gains of nearly 1 per cent
on healthy gains in select heavyweights such as Reliance Industries, TCS and Tata Motors.
Sensex and Nifty set fresh records at 39,487.45
and 11,856.15, respectively, during the week gone by, which saw fourth quarter earnings, FPI inflows and global sentiment setting the tone
for the market.
The coming week has FO expiry and fourth quarter numbers of some of the heavyweights that may infuse some volatility into
the market and some knee-jerk reactions as well are expected due to the ongoing results
Here is a look at key factors that can sway the market through the coming week: FO expiry: The market may experience bouts of volatility as
the March series of futures and options contracts expire on Thursday and participants will roll over their positions to the April series.
Q4
earnings: The fourth quarter earnings will catch all eyes as the next week will see earnings of ACC, Indiabulls Housing Finance, Bharti
Infratel, UltraTech Cement, Axis Bank, Maruti Suzuki India, Tata Steel, Hero MotoCorp and YES Bank among others
If they come out with better numbers and positive outlook for the future, the market may see itself scaling new highs
Political landscape: Experts say political vibes may keep market under pressure till election results are out on May 23
"Markets are expected to remain subdued and under pressure at least till the election season is over," said Jimeet Modi, Founder CEO, SAMCO
Even though there is a broader belief that Narendra Modi-led NDA will come back to power, the undercurrent of uncertainty over election
outcome may keep the market slightly subdued
FPI inflow: Flow of foreign portfolio investments will remain an important factor for the market
Foreign portfolio investors (FPIs) remained net buyers in the market, putting in Rs 1,038.46 crore on Thursday, NSE data showed
In April so far, FPIs have pumped in Rs 13,006 crore, data available with NSDL showed
Rupee's health: The Indian rupee on Thursday staged a strong comeback by regaining 25 paise to 69.35 against the US dollar after three
sessions of losses amid sustained foreign fund inflows
The domestic unit declined by 18 paise on a weekly basis
A stable rupee will give investors some comfort at a time when several factors are indicating at volatile sessions ahead.
Global sentiment:
The quarterly earnings of the US companies will be in focus too
Microsoft, Facebook and Amazon.com are to report their first-quarter numbers in the coming week which will catch the attention of markets
across the globe.
BoJ monetary policy meet: The Bank of Japan (BoJ) will announce its interest rate decision on Thursday
As per Reuters, the BOJ is widely expected to maintain its pledge to guide short-term rates at minus 0.1 per cent and long-term yields
around zero under a policy dubbed yield curve control
It is also expected to forecast that inflation will remain below its target through the fiscal year that ends in March 2022
Technical barometer: The Nifty broke crucial support around 11,760 level on Thursday, but somehow extended its higher-high higher low
formation for the fourth straight session
The bulls looked exhausted after the recent rise, said analysts, who feel the index needs to hold above 11,700 to buck the weakening trend
Going ahead, if Nifty trades below 11,738 and closes below 11,700, it may result in the failure of the recent breakout, said Mazhar Mohammad
