Earnings, Global Cues to Set Trend; Stocks May See Volatility
Stock markets may see volatility this week amid derivatives expiry, and indices taking cues from quarterly earnings of blue-chips such as Tata Motors, ITC, and Sun Pharma as also global trends, say experts.
Image for representation. (Photo: Reuters)
New Delhi: Stock markets may see volatility this week amid derivatives expiry, and indices taking cues from quarterly earnings of blue-chips such as Tata Motors, ITC, and Sun Pharma as also global trends, say experts.
The result season is going on and all eyes will be on the numbers, he added.
"We are set to experience considerable volatility this week after witnessing four successful sessions and market hitting fresh record highs which made India the most expensive stock market in the world," Vijay Singhania, Founder Director, Trade Smart Online said.
"Volatility will be high as traders will roll over positions in futures & options (F&O) segment. Next set of corporate earnings, currency movement and trends in global market will dictate trend on bourses," he said.
Some of the prominent companies announcing their earnings this week include Gail, Tata Motors, Lupin, Indian Oil Corporation, ITC, Tech Mahindra and Sun Pharmaceutical Industries.
"In the near-term, the market is ripe for a correction.
Once this corrective phase is over, the upward journey will restart, but before that the excess froth that have been created must be cleaned up and the correction will necessarily release all that extra pressures," Jimeet Modi, CEO, SAMCO securities said.
"In the intermediate term, global factors will play an important role in determining the mood of the market. The smooth implementation of GST provisions would be next challenge for the country," he added.
"Next week, we feel market will witness profit-booking due to monthly expiry," Foram Parekh, Research Analyst, Bonanza Portfolio Ltd said.
"As GST is one of the biggest tax reforms to be rolled out, it would go on to boost the positive sentiment for the markets. As such, sectors which could benefit due to the GST rates announced till now would include FMCG, utilities and other metal companies that use coal as an input, dairy, etc," Nitasha Shankar, Sr Vice President and Head of Research, YES Securities India Ltd said.
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