results to set market Even as rupee movement will keep investors on their toes, key earnings like ONGC, Tata Motors and data on Indian economy will decide market course
Stock markets are likely to witness volatile trading this w
eek as investors look to GDP data and settle this months derivatives contracts.
The rupee movement, which fell to record lows against the dollar in the week gone by and impacted markets, will keep investors cautious.
The forthcoming week is also likely to see stock- specific trading as key results like Coal India ( consolidated), Tata Motors, HPCL, Power Grid, ONGC, M& M and GAIL pour in. Besides, global cues will influence the markets in view of persisting euro- zone debt crisis.
Experts said markets will see volatile sessions ahead of settlement in Mays Futures & Options contracts and GDP data on Thursday.
During this month till May 24, FIIs were net sellers to the tune of 1656 crore while DIIs were the net buyers to the tune of 753 crore.
The 30 share BSE Sensex settled at 16217.82 up by 65.32 points or 0.40%, while the NSE Nifty closed at 4920.40, up by 28.95 points or 0.60% for the week.
Last week, state oil companies raised petrol prices by Rs 7.5/ litre due to high global crude oil prices and rupee depreciation against the US dollar, resulting in higher costs.
Meanwhile, the government has said it will watch global oil prices and rupeedollar rate for ” a few days” before taking any decision on rolling back the rates.
According to Unicon Financial Solutions CEO Gajendra Nagpal: ” Much depends on what happens on the diesel front. The government not succumbing to pressure to rollback petrol price hike is a good news for the markets and the economy.
At present, the mood is very cautious among investors and going ahead markets would be rangebound and volatile.” Investors cheered the
petrol price hike, seeing it as a step taken towards fiscal consolidation. The BSE Sensex on Thursday ( a day
after the hike) gained 274 points – the highest in a single day since March 30.
However, the optimism faded amid reports that petrol price hike may be partially rolled back. The Sensex on Friday ended 4.48 points or 0.03 per cent lower.
According to Rakesh Goyal VP Bonanza Portfolio: ” Global developments will continue to influence market sentiments. Immediate upside resistance for the Nifty exists at 4,950.” Auto and cement shares are expected to be in focus as companies from these two sectors will start unveiling monthly sales data from Friday.
” With the bearish broader market sentiment markets may see a gap- down opening on Monday. With derivative expiry on Thursday volatile trading sessions will be witnessed in the markets. Also global developments will be a crucial factor,” Geojit BNP Paribas Financial Services Head Research Alex Mathews said.
Investors will also keenly watch the US jobs and GDP data later this week.
The BSE 30- scrip benchmark Sensex snapped its 4- week losing streak by recovering 65 points to end the week at 16,217.82.
MARKETS are likely to see volatile sessions and global developments will be a crucial factor