INSUBCONTINENT EXCLUSIVE:
earnings season, along with macro-economic data points such as industrial output and inflation are expected to flare-up volatility in Indian
equities during next week, market observers opined."The 2QFY20 earnings would be cautiously watched out which begins next week
Investors would evaluate management narratives as to how they intend to utilize the savings from the recently announced corporate tax rate
cut," Motilal Oswal Financial Services' Retail Research Head Siddhartha Khemka told IANS."Even globally, unemployment data of US which is
due next week, holds the key for Fed's next step towards rate cut
Thus domestic and global developments would keep markets range bound with negative bias."According to Edelweiss Professional Investor
Research's Chief Market Strategist Sahil Kapoor: "With many pulls and push in the upcoming earnings seasons expect volatility to remain
high and markets to regain a stronger footing as financial results are reported."Second quarter, 2019-20, earnings result season will kick
IT major Tata Consultancy Services (TCS) is expected to be the first blue-chip to come out with its Q2 result on October 10.Infosys,
IndusInd Bank, and Union Bank of India are also expected to announce their earnings in the coming week."Financial results of India Inc for
the quarter ended September 30, 2019 will be closely watched in the truncated trading week ahead," HDFC Securities' Head Retail Research
Deepak Jasani said.Apart from quarterly results, investors will look forward to the macro-economic data points of IIP (Index of Industrial
Production), Consumer Price Index (CPI) and India's trade figures.India's industrial production data for August 2019 will be announced
on October 11, 2019.On the global front, developments surrounding the US-China trade talks might also induce volatility."Investors'
expectations are low, given Trump's penchant for impulsive forays in the nearly two years of on-again, off-again negotiations," Jasani
said."Investors will also look ahead to the Federal Reserve releasing the minutes from its September meeting on Wednesday (October
9th)."Besides the macro-economic data points, Indian rupee's movement will also have a bearing on the equities."Rupee closed unchanged on
last day of the week at 70.88 RBI's monetary policy did not help the rupee much
However, monetary and fiscal leeway would make currency weaker in near future," said Sajal Gupta, Head, Forex and Rates, Edelweiss
Securities."Fear of more fiscal slippage in days to come shall also be a concern for rupee
Next week range can be seen at 70.60 to 71.80."Additionally, technical charts showed that underlying trend of Nifty has turned bearish."The
reversal pattern formed as per smaller and larger time frame could open up some more weakness for next week," Jasani said."After falling to
near the crucial lower supports of 11,100-11,050 levels, there is a possibility of minor upside bounce by Nifty from the lower levels
But, the Nifty could eventually break this support band in the next few weeks."Get Breaking news, live coverage, and Latest News from India
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