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Domestic stock markets are expected to see high volatility this week due to a host of factors such as US Fed rate decision, monthly derivatives expiry and announcement of results by index companies, analysts said.
Ajit Mishra, VP - Research, Religare Broking Ltd said, “This week is action-packed as we have several important data and events lined up. First, participants will react to results of index heavyweights like Reliance, Infosys, ICICI Bank and Kotak Bank in early trades.
Santosh Meena, Head of Research, Swastika Investmart Ltd said that the event-heavy week shall spike volatility. She added, “We will have July month F&O expiry on Thursday which may also lead to volatility in the overall market,” Meena added.
On the global front, the US FOMC (Federal Open Market Committee) meeting outcome on 27th July will be the most critical event, he said. Movement of the dollar index and crude oil prices will be other important factors.
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It will be interesting to see the foreign institutional investors’ (FIIs) behavior because, they become net buyers for the week after a long time, Meena added.
Reliance Industries on Friday reported a 46 per cent jump in its June quarter net profit on bumper earnings from oil refining as well as an uptick in telecom and retail businesses.
ICICI Bank on Saturday reported a 50 per cent jump in standalone net profit to Rs 6,905 crore in the first quarter of the current fiscal aided by a decline in bad loans.
Kotak Mahindra Bank on Saturday reported a 26 per cent rise in its net profit to Rs 2,071.15 crore in the first quarter of the current fiscal year helped by a decline in bad loans.
As the earnings season would gain pace, we have a long list of prominent companies who will be announcing the results this week, Mishra said. Axis Bank, Tata Steel, Asian Paints, Bajaj Auto, Larsen & Toubro, Maruti Suzuki, Tata Motors and HDFC are some of names from that list, he added.
Last week, the 30-share BSE benchmark jumped 2,311.45 points or 4.29 per cent.
"Indian equity benchmark indices gained more than 4 per cent last week with positive closing each day thanks to buying by FIIs, recovery in global market, some cool off in dollar index and commodity market, easing inflation fear and better-than-expected Q1 earnings so far," Santosh Meena said.
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