INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Neither Karnataka election jitters nor simmering oil prices globally could dampen the spirits of the bulls last week, as the
domestic shares posted their biggest weekly gain in five weeks.
Upbeat quarterly earnings and soft US inflation data acted as catalysts to
On a weekly basis, the indices gained 1.77 per cent each.
The outcome of Karnataka assembly elections will set the market tone
said Gaurav Jain, Director, Hem Securities.
However, any setback may force the Modi government to turn populist and go slow on bold reform
measures, Jain added.
Let's take a look at the key events/developments that could influence investors' sentiment in the coming week:
-Karnataka poll outcome: A lot will depend on the outcome of the assembly elections, as it will set the tone for 2019 Lok Sabha elections
Voting for Karnataka elections, which took place on Saturday, saw around 70 per cent turnout
Exit polls suggested a fractured mandate, but were split over whether the Congress or the BJP will emerge the single largest
However, no one seems to be winning.
"The elections are crucial for the incumbent Congress as well as the BJP in the run up to the federal
Opinion polls suggest a hung state assembly (nearly 95-95-40 seat split between BJP-Congress-JDS (a regional party)," foreign brokerage CLSA
If the BJP ends up forming the government, market sentiment would improve but that could be the local peak, it said
The verdict for Karnataka elections will be out on May 15, 2018.
Next batch of Q4 earnings: Corporate earnings will continue to be one of
Hindustan Unilever, Bombay Dyeing and Abbott India are some of the notable names that are slated to release their Q4 earnings on May 14
Lupin, Punjab National Bank, Britannia, Reliance Communications and Syndicate Bank are expected to unveil their numbers on May 15, Tuesday,
while Hindalco Industries, ITC, JK Lakshmi Cement, JSW Steel, Muthoot Finance and Tata Steel will announce theirs on Wednesday and JK Tyre
industrial output expanded at its slowest in five months in March, pulled down by slow growth in mining and contraction in the production of
key items such as hand tools, gold jewellery, paper and readymade garments
The index of industrial production (IIP) rose 4.4 per cent from a year ago, data issued by the Central Statistics Office (CSO) showed
India's industrial output grew 7.1 per cent in February 2018
For the full year 2017-18, industrial production grew 4.3 per cent, compared with 4.6 per cent in 2016-17
The consumer price inflation (CPI) and wholesale price inflation (WPI) prints for April 2018 will be out on Monday, May 14
CPI and WPI stood at 4.28 per cent and 2.47 per cent, respectively, in March 2018.
Tech charts show upside potential: The Nifty50 on Friday
breached a strong hurdle at the 10,784 level on a closing basis to reclaim the 10,800 mark
In the process, it formed a bullish candle on daily and weekly charts, suggesting bulls are in the commanding position
Nifty needs to hold above 10,785 zones to extend its move towards 10,888 and 10,950 levels, Chandan Taparia of Motilal Oswal Securities
said, adding that supports for the index at 10,725 and 10,680 levels.
"We are of the opinion that 10,610 levels for current month remains
crucial support for the indices," says Anita Gandhi, Whole Time Director at Arihant Capital Markets
Hence, as long as Nifty holds the mentioned level, there is a high probability that the index may test 10,897, 10,949 and 11,009 levels in a
couple of weeks, Gandhi adds.
Cement stocks may hog limelight: According to a Reuters report, the government is planning to propose
An oil refinery by-product, petroleum coke, or petcoke, is used as a fuel because of its higher energy content than coal, but it releases
larger amounts of carbon dioxide and sulphur dioxide, which can cause lung disease and acid rain
Shares of cement companies which use petcoke as feedstock, and petcoke producers may hog limelight when trading resumes on Monday
quarter due to a jump in bad-loan provisions, following a tightening of central bank rules
Indian banks, already burdened by a near-record Rs 9.5 lakh crore of bad loans as of last year, were expected to report a further rise in
NPAs in the March quarter after the central bank withdrew half a dozen loan-restructuring schemes and tightened some rules in February
Shares of the banks may react when market opens on Monday.
Crude oil prices: Crude prices fell in a see-saw session on Friday, retreating
on global markets, Reuters reported
However, the prices remained just below multi-year highs, with Brent on track for a weekly 2.8 per cent gain and US crude a 1.2 per cent
Tarun Satsangi, Head of Research for Commodities and Forex at Globe Commodities, says oil prices could touch $80 a barrel in medium term on
Iran chaos.
Last week, US President Donald Trump decided to pull out of the Iran nuclear deal
If oil prices rise to fresh peaks, it will disturb the math of global economy, including India.
