INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The domestic equity market started May FO series with a bang, as the key benchmark indices logged good gains on Friday
The SP BSE Sensex gained 256 points, or 0.74 per cent, to close at 34,970, while Nifty50 ended just shy of the crucial 10,700 mark at
10,692, up 75 points for the day.
On a weekly basis, the 30-share BSE index gained 1.6 per cent while Nifty50 added 1.2 per cent
It was a fifth straight weekly gain for the bulls.
Among key highlights, the oil-to-telecom behemoth Reliance Industries (RIL) posted its
highest-ever quarterly profit at Rs 9,435 crore for March quarter, while private lender Axis Bank posted its worst quarterly earnings, a Rs
2,189 crore loss.
Maruti Suzuki disappointed Street with its lower-than-expected Q4 numbers, while telecom firm Idea Cellular reported a
three-fold rise in a consolidated net loss at Rs 962.20 crore.
Going forward, quarterly earnings will continue to dominate proceedings
The market will be closed on May 1, Tuesday, on account of Maharashtra Day.
Next batch of quarterly resultsA host of big companies will
announce their March quarter numbers during the week
CEAT, DHFL, HDFC, Hindustan Zinc and Kotak Mahindra Bank are some of the notable names slated to release their numbers on Monday, April 30
FMCG firm Dabur will unveil its results on Tuesday while HCL Technologies, Hero MotoCorp, IndiGo and Tata Power will release theirs on May
Adani Ports, Adani Power, Emami, HCC, Hexaware, IIFL, LT Finance Holdings, MRF, PNB Housing and Vedanta are scheduled to declare their score
Ambuja Cements, Godrej Prop, Indian Bank, NIIT Tech, PVR and Wockhardt will announce their results on Friday.
Outcome of US Fed meetThe
Federal Open Market Committee (FOMC) of US Federal Reserve is slated to meet on May 1 and 2 to decide on key interest rates
The Fed raised rates at its last meeting in March and the widespread expectation is that it will keep rates unchanged this time
The Fed is unlikely to raise rates this time around, with moves considered likely only at the June, September and December meetings, which
are followed by press conferences, says a Reuters report.
Auto sales numbersShares of automakers will be in focus as the companies will
start releasing monthly sales numbers for April 2018 starting from May 1, 2018
Major automobile manufacturers registered healthy sales figures for March 2018
Automakers such as Maruti Suzuki and Tata Motors reported steady growth with new models Swift and Nexon pushing up sales numbers last month
Commercial vehicles and tractors also made a strong showing, with the budget having pledged greater spends in infrastructure and increased
support for farmers, according to an ET report.
Nifty near crucial resistanceThe Nifty50 index on Friday broke its critical resistance in
the 10,630-10,640 zone and in the process formed a Marubozu candle on the daily chart
This augers well for the broader market, which has been consolidating in a narrow range for some time now
Traders can expect the 50-pack to hit an initial target of 10,740, say analysts
Minor hiccups can be encountered in the gap zone between 10,702 and 10,736 levels registered on February 5
is likely to test 10,796, 10,856 and 10,926 levels
However, if it trades and closes below 10,647 level, then it can test 10,587, 10,528 and 10,458 levels, says Anita Gandhi, Whole Time
Director at Arihant Capital Markets.
Watch out for macro dataOn the macro front, the government will announce the performance of India's
manufacturing sector in April 2018 on Wednesday, May 2
Manufacturing sector activity slipped to a five-month low in March as order flow lost momentum, and businesses showed little appetite for
This apart, the performance of India's services sector for April 2018 will be announced on Friday, May 4
The seasonally adjusted Nikkei India Services Business Activity Index improved from 47.8 in February to 50.3 in March, indicating that
business activity stabilised during the month.
Crude oil pricesOil prices edged lower on Friday, although Brent still gained for a third
straight week amid supply concerns should the United States reimpose sanctions on Iran
Brent crude futures LCOc1 fell 10 cents, or 0.1 per cent, to settle at $74.64 a barrel
This month, the global benchmark hit highs above $75, a level last seen in late 2014, said a Reuters report
US West Texas Intermediate (WTI) crude futures fell 9 cents to settle at $68.10 a barrel, also a 0.1 per cent loss.
The surge in oil prices
3 economy faces a wider trade deficit, a worsening of stretched government finances, and slower economic growth if oil prices remain
stubborn at the current level
That would challenge policymakers trying to strengthen the economy in time for elections next year," the report said.
This apart, global
markets trend, behaviour of foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) and rupee movement against the
dollar will steer the market in the coming week.
