Indices gained for the fourth straight week as investors cheered strong earnings by Indian companies in the April-June quarter. For the week ended August 17, S&P BSE Sensex gained 0.21 per cent and settled below the psychological 38,000 level, while the Nifty 50 rose 0.36 per cent to close at 11,470.75, its record closing high.

Sun Pharmaceutical, ICICI Bank and Infosys were the top gainers (5-8 per cent), while Vedanta, SBI and L&T (5-7 per cent) were the top losers. The broader markets outperformed benchmark indices with the BSE Mid-Cap and the BSE Small-Cap indices ending with gains of 0.5-0.6 per cent.

Mustafa Nadeem, CEO, Epic Research, believes that the Indian markets may continue to be in a secular bullish trend given ample liquidity, positive domestic cues (double-digit earnings, volume growth, improved margins) and rebound in mid- and small-cap stocks for the last few weeks.

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Next week, events such as the US-China trade talks (August 21-22), progress of monsoon (9 per cent below the Long Period Average from June 1-August 15 ), movement of rupee against the dollar and crude oil price movements will determine the trend.

Sanjeev Zarbade, Vice-President — Research, Kotak Securities, sees volatility and macro risks over the next few weeks from potential escalation in the US-China trade issues, and possible ‘hard’ sanctions on Iran leading to sharp decline in oil exports from Iran. Higher crude oil prices and possible emerging market contagion given Turkey’s fragile macro-economic situation and weak macro-economic position of emerging markets, too will have a say, he said.

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