Analysts have said that stock markets this week will be guided by the ongoing quarterly earnings season and global factors. They also said that the movement of foreign funds would play a crucial role in dictating the terms.

Apart from that, they said, the movement of the rupee and the trend in international oil benchmark Brent crude will also affect trade.

“The market will be looking for direction from Q2 earnings and global cues. This week many financial and cement companies will be coming out with their Q2 results. Global markets are quite volatile, which volatility in our market could be result too,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Also read: FPIs pull out almost 7,500 crore in the equity market so far in October

In terms of global factors, macro numbers from the United States and China will be important, Meena said.

Movement in US bond yields, dollar index and crude oil will be other global factors to watch out for, Meena added. It will be important to see institutional flows from now on.

“Earnings and global cues will determine the trend this week. First, participants will respond to the HDFC Bank numbers in early trade on Monday.

“Going forward, we have some notable names like ACC, Ultratech Cement, IndusInd Bank, Axis Bank, Asian Paints, Bajaj Finance, ITC and Hindustan Unilever announcing their numbers along with many more,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

HDFC Bank on Saturday reported a 22.30 percent jump in its consolidated net profit for the September quarter at 11,125.21 crore, helped by a reduction in money set aside for bad loans.

Apurva Sheth, Head of Market Perspectives, Samco Securities, said, “The company’s quarterly results will take center stage. D-street will be interested to hear management’s commentary on future earnings growth trajectory.”

According to Meena of Swastika Investmart, Indian equity markets have been in a range for the past three weeks.

Last week, the Sensex lost 271.32 points or 0.46 percent, while the Nifty fell 128.95 points or 0.74 percent.

(With inputs from PTI)

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