Earnings of blue-chips like SBI and Coal India and progress of monsoon will be among the key parameters influencing the stock market this week, which may hit pockets of volatility amid derivatives expiry, feel experts.
“Updates on monsoon progress, sentiment in global markets, macroeconomic data and the next batch of Q4 FY16 earnings will dictate sentiment in the stock market in the near term,” said Vijay Singhania, founder Director, Trade Smart Online.
Choppiness in markets is expected to remain high as traders roll over positions in the derivative segment, he added. The May derivatives contracts expire on Thursday.
Key corporates, including BPCL, Tata Power, Cipla, Tech Mahindra, Bajaj Auto, GAIL, Tata Steel, Larsen & Toubro, Bharat Heavy Electricals, SBI and Coal India will come out with their March quarterly numbers this week.
“Fundamentally, the result season has been a mixed bag, with large PSU banks delivering a poor set of numbers due to asset quality concerns. SBI’s results are yet to be announced and the market will be watching keenly the same,” Reliance Securities said in a note.
Market analysts said that going forward, over the next few weeks, progress of monsoon will be a key determinant for the economy and the stock market.
“We believe that investors should increase allocations to equity keeping an eye on rains, which are the next big trigger,” said Motilal Oswal, Chairman and MD, Motilal Oswal Financial Services (MOFSL).
On a weekly basis, both the indices – the Sensex and the Nifty – fell 187.67 points, or 0.73 per cent, and 65.20 points, or 0.83 per cent, respectively.