Week Ahead: Q2 Results, US bond yields, other global cues among key market triggers this week

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Also Read: These 48 smallcap stocks rise 10-30% even as Sensex sheds 1% on volatile week; do you own? "Middle East tensions and elevated US bond yields steered the market to a consolidation path this week. A weak start to the earnings season, disappointment from IT sector, and a mixed bag of results from banks influenced investors to book profits from the table,'' said Vinod Nair, Head of Research at Geojit Financial Services. On Friday, Nifty 50 closed at 19,542.65, down 82 points, or 0.42 per cent while the Sensex ended the day at 65,397.62, down 232 points, or 0.35 per cent.

Mid and smallcaps suffered bigger losses. The BSE Midcap index fell 1.02 per cent while the Smallcap index dropped 0.76 per cent. In three sessions to Friday, Sensex dropped 1,030 points while Nifty tanked 268 points due to selling pressure.

On the weekly front, the BSE benchmark plunged 885.12 points or 1.33 per cent and the Nifty declined 208.4 points or 1.05 per cent. ‘’Investors are likely to remain cautious in the near term due to concerns about the long implication of geopolitical tensions in the Middle East. We expect volatility to persist, although long-term investors will find bargain hunting opportunities due to an optimistic Q2 FY24 earnings estimate and a festival-driven demand environment,'' added Geojits' Nair.

Going forward, a busy week awaits the primary market as five new initial public offerings (IPOs) are slated across mainboard and small-and-medium enterprises (SME) segments. The week will be crucial from the domestic and technical point of view as investors will closely eye the ongoing Q2FY24 results. As the earnings season gains momentum, the market sentiment will be shaped by corporate’s management commentary and bottom-up