Indian markets look at an earnings-heavy week; RIL stock, auto sales key
Equity markets stare at an event-heavy week, with key large cap companies slated to announce their March quarter earnings, and as traders await high frequency data such as auto sales numbers for the month of April
Mumbai: Indian equity markets stare at an event-heavy week, with key large cap companies slated to announce their March quarter earnings, and as traders await high frequency data such as auto sales numbers for the month of April.
In the weak ahead companies such as Housing Development Finance Corp. Ltd, Kotak Mahindra Bank Ltd, Tata Power Ltd, Marico Ltd, Hindustan Zinc Ltd, Adani Ports and Special Economic Zone Ltd, Vedanta Ltd will release their earnings for the March quarter.
The monthly auto sales number will also hold key after car sales saw a strong recovery in March.
Some analysts, however, feel that expectations of good earnings are priced in, and the next key trigger would be Karnataka election results next month.
“Given that markets have risen by 6% from its bottom in spite of negative global onslaughts indicates that they have truly discounted good set of corporate numbers,” said Jimeet Modi, founder and CEO, SAMCO Securities.
“ Going ahead the main trigger for the market would be mid-May election results which could swing the mood either ways for our indices and therefore it is expected that the markets will oscillate in a range-bound manner till clarity emerges in the political conundrum,” added Modi.
Meanwhile, in Monday’s trade, energy-to-telecom giant Reliance Industries Ltd (RIL) will be in focus after it reported its highest ever quarterly net profit of Rs9,435 crore, beating Street estimates, for the quarter ended 31 March.
In the announcement after market hours on Friday, RIL posted a mere 1% growth in net profit on a sequential basis, with the performance of Reliance Jio Infocomm Ltd remaining subdued as the ongoing tariff war, which Jio triggered, brought down its average revenue per user to Rs137 in the March quarter from Rs154 a quarter earlier.
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