INSUBCONTINENT EXCLUSIVE:
Authors: JordanNEW DELHI: The domestic equity market ended on a negative note last week, thus posting its first weekly loss in six weeks
Subdued global cues and heavy selling in IT and pharma stocks weighed on investor sentiment.
The SP BSE Sensex ended 0.15 per cent lower for
the week at 34,915, while the NSE Nifty settled at 10,618, down 0.69 per cent.
Here's a list of seven developments that may move the market
in the coming week:
Next batch of earningsAmong notable names, ICICI Bank, Tata Chemicals and Tata Coffee are slated to announce
January-March results on Monday, while ABB India and Jubilant FoodWorks will unveil their score cards on Tuesday
Eicher Motors and JSPL are scheduled to announce results on Wednesday.
Adani Enterprises, Asian Paints, Nestle India, Tata Communications,
Titan Company, Union Bank of India and Zee Entertainment Enterprises will release their quarterly numbers on Thursday
Gillette India and Tata Global Beverages will announce January-March numbers on Friday.
Karnataka pollsThe Karnataka Legislative Assembly
elections 2018 is scheduled to be held across the state on May 12
Results of the poll will be out on May 15
Leading parties, the ruling Congress and the BJP, have been campaigning aggressively in the state for the last few months to woo voters
Chief Minister Siddaramaiah will be fighting against BJP's BS Yeddyurappa for the CM's post in the upcoming polls
Market will keenly follow the developments from the state.
US jobs dataUS job growth increased less-than-expected in April and the
unemployment rate dropped to near a 17.5-year low of 3.9 per cent, as some out-of-work Americans left the labour force, Reuters
reported.
The report also showed wages barely rose last month, which may ease concerns that inflation pressures are rapidly building up,
likely keeping the Federal Reserve on a gradual path of monetary policy tightening
Financial markets across the globe, including India may react to it when trading resumes on Monday.
All eyes on US sanctions against IranOil
prices rose about 2 per cent on Friday, with US crude hitting its highest in more than three years, as global supplies remained tight and
the market awaited news from Washington on possible new sanctions against Iran, Reuters reported
On May 12, the US President Donald Trump will decide whether to extend waivers on economic sanctions against Iran
If it doesn’t, the global market could lose about one million barrels of oil a day, says a Market Watch report.
The sanctions on Iran were
lifted under a 2015 agreement among a group of world powers, including the US and Iran, aimed at curbing Tehran’s nuclear activities.
Tech
ViewThe Nifty50 index on Friday formed a ‘Dark Cloud Cover’ pattern on daily chart, suggesting possible downside ahead
The pattern may have negative repercussions, which will be confirmed if the Nifty50 closes below the 10,600 level, said Mazhar Mohammad of
Chartviewindia.in.
However, Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan has a bullish outlook on the index for the short term
with a target 10,910 and reversal placed at 10,500
"The short term trend will remain bullish as long as it does not close below 10,500
On the way up, 10,708 – 10,785 will be crucial resistance in the near term
The rise in the benchmark index can stretch towards 10,910, if it breaks the crucial resistance level of 10,785," Ratnaparkhi said.
Macro
numbersThe government will release industrial production data for March on Friday
India's industrial output grew 7.1 per cent in February from a year earlier
This apart, the government will also unveil inflation data based on consumer price index (CPI) for April
Retail inflation stood at 4.28 per cent in March, slowing for the third straight month from a 17-month high, according to data released by
the Central Statistics Office.
Global cuesThe big central banking event of next week is the Bank of England’s May 10 meeting, with market
expectations overwhelmingly in favour of interest rates being held at the current 0.5 per cent
Interest rate bets have swung around sharply from early April when investors priced a 90 per cent chance of the BoE raising rates by 25
basis points, Reuters reported.
In addition, the Bank of Japan (BoJ) monetary policy meeting minutes will be unveiled on Monday, 7 May
