Trading in the markets will also be influenced by movement in rupee, Brent crude oil and foreign institutional investors.
The ongoing quarterly earnings will be the major factor driving market trends going ahead and benchmark indices may face volatility this week amid derivatives expiry, analysts said. Markets will also track global equities for further direction, they added.
Santosh Meena, head (research) at Swastika Investmart, said, “If we talk about the cues for this week then the next batch of earnings season and the October month F&O (futures and options) expiry may cause volatility in the market.” Meena added that the market will react to earnings of Reliance Industries and ICICI Bank on Monday.
Tech Mahindra, Ambuja Cement, Axis Bank, Kotak Mahindra Bank, Adani Ports, L&T, Bajaj Auto, ITC, Maruti Suzuki, DLF, Indigo and Tata Power will come out with their earnings during the weak, Meena said.
Siddhartha Khemka, head (retail research) at Motilal Oswal Financial Services, said: “On Monday, investors will react to Reliance and ICICI Bank results along with global cues.” ICICI Bank on Saturday reported its highest-ever quarterly profit on a standalone basis at Rs 5,511 crore for the September 2021 quarter, on the back of healthy loan growth across verticals, aided by a fall in bad loans.
Billionaire Mukesh Ambani’s Reliance Industries on Friday reported a 43 per cent jump in its September quarter net profit, as its businesses from oil to retail fired on all cylinders, growing both sequentially and on a year-on-year basis.
Yesha Shah, head (equity research) at Samco Securities, said: “The market may struggle to hold its footing this week and is likely to stay range-bound. With the monthly expiry this week, market volatility may linger.” Last week, the 30-share BSE benchmark declined 484.33 points or 0.79 per cent.
“In the week ahead, domestic markets will continue to track Q2 results for further direction. Any, further inconsistency, as seen in recent numbers, can lead to further fall in the short term,” Vinod Nair, head (research) at Geojit Financial Services, said. Trading in the markets will also be influenced by movement in rupee, Brent crude oil and foreign institutional investors.