Sensex, Nifty may continue to be volatile; SBI shares to be in focus

  • SBI shares are likely to be in focus today
  • HDFC, ITC, Vodafone Idea will announce March quarter earnings this week

MUMBAI: The markets are likely to stay volatile this week while US-China trade talks continue and India awaits for results of the general elections on 23 May. Corporate earnings of March quarter will also impact investor sentiment this week.

Jimeet Modi, Founder and CEO, SAMCO Securities & StockNote said, “The important question next week would be - Amongst the trio: US China tiff, political outcome or quarterly results which one will dominate the markets and swing the bourses accordingly in their favour. It’s a tough match between the trade war and the elections while the company’s numbers have taken a back seat. Volatility will remain at its peak as the battle intensifies."

Top US and Chinese trade negotiators concluded the first of two days of talks on Thursday to rescue a trade deal that is close to collapsing as Washington prepares to go ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China. Tension between Washington and Beijing has risen after a major setback in negotiations last week when China revised a draft deal and weakened commitments to meet US demands for trade reform.

US President Donald Trump responded by ordering a tariff hike, and China has said it would retaliate. The 10-month-old trade war has already cost companies in both countries billions of dollars.

Meanwhile, major companies that will announce March quarter earnings this week are HDFC, ITC, Vodafone Idea, Oriental Bank, IDBI Bank, Union Bank, and Indian Bank.

Shares of State Bank of India are likely to be in focus on Monday. It posted a profit of 838.40 crore. Last year, in the same quarter, the bank had posted a loss of 7,718.17 crore. Provisions and contingencies of SBI surged 174.75% to 16,501.89 crore during the quarter from 6,006.22 crore a quarter ago.

Among macros, retail and wholesale inflation data will be released this week. India’s factory output entered negative territory in March after a gap of 21 months, contracting 0.1% to signal a slowdown in consumption, as well as investment. In February, the index of industrial production (IIP) was almost flat, growing at 0.1%.

Data released by the Central Statistics Office (CSO) on Friday showed that manufacturing, with 78% weightage in the index of industrial production (IIP), contracted 0.4% in March, while mining and electricity grew 0.8% and 2.2%, respectively.

(Reuters contributed to the story)