Equity markets will look for directions from global trends, ongoing quarterly earnings and investment patterns of foreign institutional investors (FIIs) in a holiday-shortened week ahead and may encounter volatility amid the scheduled monthly derivatives expiry, according to analysts.
“This week is a holiday-shortened one and it’s going to be critical due to the list of events and data that are lined up. First, markets will react to the earnings of two index heavyweights — Reliance Industries and ICICI Bank,” stated Ajit Mishra, vice-president (research) of Religare Broking.
Mishra added that the uncertainty around the quantum of a rate increase by the US Federal Reserve is spooking markets the world over and participants expect clarity in the scheduled FOMC (Federal Open Market Committee) meeting outcome on January 26.
“On the earnings front, we have big names such as Axis Bank, Kotak Mahindra Bank, Maruti, Cipla, Vedanta and Larson & Toubro who will announce their results along with several others,” Mishra said.
S Ranganathan, head (research) at LKP Securities, stated that rising oil and input prices coupled with a moderating rural economy kept investors watchful as markets turned volatile.
(With inputs from PTI)