Election, Q4 earnings, and FII flows among 10 factors that will steer D-Street this week
Nifty 50 ended with weekly declines of 2.6% amid significant volatility where the India VIX shot up to a 52-week high. When markets resume trading on Monday, a host of important domestic and global events lined up during the week are likely to impact them.
«Indian stocks witnessed a sharp correction after reaching record highs. Investor sentiment turned cautious due to the upcoming elections and aggressive selling by foreign institutional investors (FIIs). This selling pressure overshadowed a strong performance in global markets, keeping domestic indices under pressure throughout the week,» said Santosh Meena, Head of Research at Swastika Investmart.
The fear gauge India VIX surged over 25% last week and high-beta sectors faced the brunt of the selling while defensive sectors like FMCG, buoyed by positive earnings reports, performed well.
These factors are likely to impact market movement this week:
1) Polls
Indian markets fell last week amid jitters regarding uncertainty over elections. The fourth voting phase will happen on Monday, May 13 and Street will keep track of it. The perception that the BJP may not get as many seats as projected earlier, has also prompted investors to cut some of their bets.
2) Q4 earnings
Over 530 BSE-listed companies will announce their March quarter earnings this week, including DLF, GIC Housing Finance, INOX India, Jindal Steel & Power, Varun Beverages, Zomato, Bharti Airtel, Bharti Hexacom and Colgate-Palmolive (India).
The markets will also react to earnings declared by Eicher
