Markets may be volatile; Q4 results to dictate mood: Experts
Mumbai: The Indian stock market is likely to see volatile trade with an upward bias in the coming week, with trading sentiment being dictated by the fourth quarter corporate earnings season, which kicks off with IT bellwether Infosys declaring results on April 13, analysts said.
The market may also see some advances during the week on hopes that RBI may ease liquidity and/or cut rates at its annual policy on April 17, they said.
The release of industrial production numbers may also have some impact on the trading sentiment this week.
"Next week will witness corporate India declaring both Q4 FY'12 and full FY'12 results. Market sentiment will be greatly influenced by the results outcome. Upside resistance for Nifty exists at 5,370-5,375 and downside support at 5,250," said Shanu Goel, Research Analyst at Bonanza Portfolio.
According to Ashika Stock Brokers Research Head Paras Bothra, "During the result season markets generally remains volatile and trades in a range. However, there are no major expectations from the results this time. Sentimentally, things haven't improved much."
Analysts said that technology stocks may benefit due to year-on-year the rupee depreciation.
Brokerage firm Angel Broking said in a report that traditionally, Q4 is a soft quarter for IT companies.
"Profitability of IT companies such as Infosys, TCS and Wipro are expected to rebound by healthy 27.1 per cent, 24 per cent and 10.6 per cent y-o-y, respectively, aided mainly by y-o-y rupee depreciation," it said.
Analysts said that uncertainty over taxing P-Notes, through which some foreign investors pick up Indian Equities, will continue to be cause concern.
"Markets may swing in gains and losses due to uncertainty on P-Notes and corporate earnings. Stock specific action will be the order of the day throughout the week," CNI Research CMD Kishore Ostwal said.
The BSE Sensex rose 82 points to end the week at 17,486.02 in lacklustre trading due to shortened week and a cautious approach adopted by investors ahead of Q4 results.