Corporate earnings, global cues, rupee likely to influence D-Street this week

Corporate earnings, global cues including key interest rate decisions by major central banks and any wild movement in crude oil, and foreign institutional flows will likely dictate the trend on Dalal Street this week.

The rupee — which has hit a series of lows against the US dollar — will continue to be on investors’ radar.

Investors will return to trade on Monday reacting to HDFC Bank’s financial results announced during the weekend. A slew of blue-chip earnings are due this week, including Reliance, Wipro, UltraTech, JSW Steel, Kotak Mahindra Bank and ICICI Bank.

The week that was

Last week, Indian equity benchmarks fell more than one percent — halting a three-week winning run — dragged by IT shares though gains in auto and pharma lent some support. The Nifty IT — which tracks the performance of 10 major software exporters in the country including TCS, Infosys and Wipro — suffered its worst weekly cut in a month. The IT index also fell after three back-to-back weekly gains.

“Investors will continue to monitor quarterly earnings and the movement in the rupee. The key global events this week include an EU inflation reading and ECB’s interest rate decision,” said Sumeet Bagadia, Executive Director at Choice Broking.

Technical view

Samco Securities’ Head of Market Perspectives, Apurva Sheth, believes the market continues to be oversold.

He expects the Nifty50 to remain above 15,800. “It may even approaching the 17,000 zone. The current levels of immediate support and resistance are at 15,500 and 16,300 respectively,” he said.