The markets are expected to start the week on a positive note. The Budget being over, the markets are likely to continue focusing on issues like monsoons, global economy and quarterly results in the short term. We expect markets to remain fairly volatile and react to Q1 FY15 major result announcements throughout the course of the week. HDFC, HDFC Bank, HDIL, Idea, Hidustan Zinc, Axis Bank, Cairn India, MRF, Century Textiles and Wipro are some of the important result announcements scheduled for the week.These stocks are likely to remain in focus during the week.
Coming to sectors NBFC stocks such as Manappuram Finance and Muthooth Finance enthused by the possibility of gaining small bank status as RBI has released draft guidelines for licensing of both payments banks and small banks. The central bank issued draft guidelines for setting up of payment banks, which will cater to marginalised sections of society, including migrant labourers, for collecting deposits and remitting funds.
We also expect to see some action in Banking, Oil & Gas, Pharma, Telecom and IT segments owing to major result announcements.
On the global front, geopolitical tensions continue to remain a cause of concern as situations in both Israel and war ravaged Ukraine move from bad to worse. The US and the EU have already issued sanctions against Russia. These events would continue to affect markets the world over. Speculation that flight MH17 with 298 people aboard was shot down by pro-Moscow separatist rebels in Ukraine has fuelled concerns of an escalation of the conflict as well as intensified US sanctions on Russia. Investors are also keeping a wary eye on events in Gaza after Israel began a ground operation late Thursday.
We expect the US markets to start the week on a subdued note due to recent developments in Gaza and Ukraine and renewed concerns about spike in oil prices on account of a likely supply disruption. All these along with tightening US & EU sanctions against Russia are likely to keep European markets volatile. The Asian markets are expected to trade with a fair share of volatility as investors remain cautious of the intensifying conflict in Middle East.
The world markets would also be impacted by a host of economic data that would be announced during the course of the week. Some of the important data announcements during the coming week include the US Jobless Data, US Industrial Production, US Mortgage Rates, US Retail Sales & Chain Stores Sales, US Manufacturing PMI, US Home Sales, UK GDP Growth, EU Services & Manufacturing PMI and UK Retail Sales.
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(Working as Head-Research at Eastern Financiers Ltd, am a post graduate in commerce from Calcutta University, and have gained wide experience in the last 18 years. Prior to joining Eastern Financiers, I have gained in depth knowledge of the Financial Markets while working with Capital Market Publishers, Lohia Securities & CD Equisearch. As head of the Equity Research Wing, I appear regularly as Guest Analyst at CNBC, Awaaz, CNN-IBN, NDTV Profit , Zee Business,Bloomberg UTV, ET Now & R Plus.)