Quarterly earnings from Reliance, others and global trends to drive equities this week, say experts

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October 13, 2019 12:45 PM

Announcing its results after market hours on Friday, India's second-largest IT services company Infosys said its consolidated net profit declined by 2.2 per cent to Rs 4,019 crore for the July-September 2019 quarter.

The m-cap of Reliance Industries Ltd zoomed Rs 28,494.36 crore to Rs 8,57,303.03 crore, the most among the frontline entities.

Quarterly earnings from biggies like Reliance Industries, HUL and Wipro as well as overseas cues would be the major driving factors for the domestic indices this week, according to analysts.

“Markets will first react to Infosys numbers in early trade on Monday. Besides, the news related to the US-China trade talks will also be closely watched. We’re still seeing mixed indications thus expect further consolidation in the index,” said Ajit Mishra, Vice President, Research, Religare Broking Ltd.

Announcing its results after market hours on Friday, India’s second-largest IT services company Infosys said its consolidated net profit declined by 2.2 per cent to Rs 4,019 crore for the July-September 2019 quarter.

“We certainly believe corporate numbers will largely guide mood of the market this week. When checked on an overall basis, we see a mixed bag of numbers where revenue growth will be slower than the previous year. Hopefully this earning season will revive investors’ sentiments in the market and will bring back long forgotten bull spirit of FPIs,” said Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.

Major corporates scheduled to declare their results this week include Hindustan Unilever Limited (HUL), Federal Bank, Wipro and Reliance Industries Limited.

On the macroeconomic front, WPI inflation data is scheduled to come on Monday, which may also influence trading, according to analysts.

Markets may also react to industrial output data released Friday evening.

Industrial output declined by 1.1 per cent in August due to poor performance by manufacturing, power generation and mining sectors, official data showed.

“We may see coming week to be further volatile with big names like Reliance, Ambuja, Wipro, ACC coming out with quarterly numbers,” Mustafa Nadeem, CEO, Epic Research said.

Global equities rallied on Friday after US President Donald Trump offered a positive assessment of US-China trade talks.

However, geopolitical tensions shot up after an Iranian oil tanker was reportedly attacked in the Red Sea near Saudi Arabia, leading to a 2 per cent jump in crude oil prices due to supply concerns.

During the last week, the BSE Sensex advanced 453.77 points or 1.20 per cent.

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