Trends that will dictate the markets this week

Quarterly earnings and global cues will be the major sentiment driver for the equity market this week, according to analysts.

Of late, Benchmark indices have been on a record-breaking run.

"Quarterly results will dictate market sentiment and will be the talk of this week as they pick up the pace.

"D-Street will be all ears to any management insights to forecast the future earnings trajectory.

"With the anticipation that companies would keep up their momentum from the previous quarter into the second quarter, investors may see whipsaw movements in the stock this week as results beat or miss market expectations," said Yesha Shah, head (equity research) at Samco Securities.

Among major earnings to be announced this week are from UltraTech Cement, ACC, Hindustan Unilever Ltd, Asian Paints, Hindustan Zinc, IDBI, Bank of Maharashtra, South Indian Bank, Federal Bank and Reliance Industries Limited.

"If we talk about the cues for this week then quarterly earnings will dominate the market where the market will react to HDFC Bank and Avenue Supermarts earnings on Monday.

"Ultratech Cement, ACC, HUL, Nestle, Asian Paints, JSW Steel, HDFC Life, and Reliance Industries will come out with their earnings during the week," Santosh Meena, head (research) at Swastika Investmart Ltd, said.

He further added that other than earnings, global cues will be important where global markets have started to do well after a period of correction.

Last week, the BSE benchmark rallied 1,246.89 points or 2.07 per cent. The benchmark went past the 61,000-mark for the first time on Thursday.

Markets were closed on Friday for Dussehra.

"Banking will be the key sector under focus in the coming days as the sector is set to kick-start its earnings season.

"With the expectation of a strong recovery in corporate earnings, the Indian market is positioned to continue its bull run.

"However, any deviation from market expectation may lead to short-term correction in the respective segments," said Vinod Nair, head (research) at Geojit Financial Services.

Markets will also track the movement of the rupee, foreign institutional investors and Brent crude.

Photograph: Shailesh Andrade/Reuters