Quarterly earnings and global developments will be the main drivers of stock markets in the coming holiday week, according to analysts.
Foreign capital flow will also play a crucial role in setting the trend, they added.
Markets will be closed on Tuesday for Muharram.
“This week the market will deal with the latest batch of Q1 earnings where it will react to SBI, HPCL and BPCL results on Monday, while Adani Ports, Bharti Airtel, PowerGrid, Coal India, Eicher Motors, Hindalco, Grasim, Hero Motocorp, LIC , ONGC and Bata India will be other major gainers during the week,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
The country’s largest lender State Bank of India (SBI) on Saturday posted a 7 per cent decline in standalone net profit at Rs 6,068 crore for the first quarter of the current financial year due to mark-to-market (MTM) losses.
Hindustan Petroleum Corporation Ltd (HPCL) on Saturday reported its highest ever quarterly net loss of Rs 10,196.94 crore in the June quarter as a freeze on petrol and diesel price revision wiped out record refining margins.
Global cues will be important as geopolitical concerns mount, while both domestic and global macroeconomic numbers will play an important role, Meena added.
India will release its CPI and IIP data on August 12, while US inflation numbers will be released on August 10.
“This week is a short holiday period and participants will be closely watching global markets and domestic factors such as earnings and macroeconomic data for clues.
“Further escalation of China-Taiwan tension may lead to volatile volatility. On the data front, we have projected IIP and CPI inflation for August 12,” said Ajit Mishra, Vice President, Research, Religare Broking Ltd.
The benchmark 30-share BSE Sensex gained 817.68 points or 1.42 percent last week.
It was the third consecutive week of gains for Indian equity markets, thanks to continued buying by FIIs. However, volatility has spiked higher as the market is a bit overbought, added Meena of Swastika Investmart.
Apurva Sheth, Head of Market Perspectives, Samco Securities, said, “On the macro front, this week is expected to be a busy one for investors. Global markets are likely to dance to the beat of the inflation data to be announced by the United States and China. Back home, market players will look to the Indian CPI print for hints on where the economy is headed.” With the salience of monetary policy now behind us, geopolitical tension between China and Taiwan will be in focus as any flare-up in the region could lead to panic situations around the world, said Amol Athawale, Associate Vice President – Technical Research, Kotak Securities Ltd.
(This story has not been edited by Business Standard staff and is automatically generated by a syndicated feed.)