New Delhi: Stock markets, which halted 3-week rally last week on a string of domestic and global concerns, will look for a booster dose from Wipro and HDFC Bank results this week, besides some positives from overseas bourses that are jittery over euro-zone debt crisis and US credit rating warnings.
Analysts said investors are expected to remain cautious and will adopt a wait-and-watch approach this week. Besides, FIIs, which are major market movers and witnessed marginally positive net buying last week despite overall decline, may provide the required support.
The Bombay Stock Exchange 30-firm Sensex slipped 296 points to end the week at 18,561.92 on a string of concerns like muted results, Mumbai bomb blasts, lower industrial production numbers, surge in inflation and a possible hike in interest rates.
"The market will see consolidation this week and is looking at the quarterly earnings very keenly. Both Bajaj Auto and Infosys have disappointed the market participants with their muted earnings last week," Geojit BNP Paribas Financial Services Research Head Alex Mathews said.
Analysts said that monsoon's progress, crude oil price movements and global market cues will be the other big concerns for the stock markets this week.
IIFL Head of Research Amar Ambani said, "The Indian stock market has largely emerged unscathed from terror attacks on Mumbai. But, the undertone is still jittery over a spate of local and global headwinds. For India, the biggest worry is inflation, which refuses to budge."
Ambani added, "Globally, major concerns are the credit crisis in the euro-zone and the impasse over debt ceiling in the US. The back-to-back warnings by Moody's and S&P (on US credit rating) and regular downgrades of peripheral euro area nations continues to cast a shadow over world markets."
Last week, eight of the 90 European banks failed stress tests designed to ensure they can withstand a financial crisis. They included two state-owned banks in Greece -ATEbank and EFG Eurobank.
First Published: Sunday, July 17, 2011, 11:44