Geopolitical crisis, Q4 results key focus for markets this week

Investors will keep an eye on March quarter results which are expected to see revival post the disruptions caused by implementation of GST. Photo: AFP

Investors will keep an eye on March quarter results which are expected to see revival post the disruptions caused by implementation of GST. Photo: AFP

Mumbai: Geopolitical tensions and corporate earnings in March quarter are likely to be key focus for markets this week. Worries on the back of US-led airstrikes on Syria last week may drag global markets. Russian president Vladimir Putin warned on Sunday that further Western attacks on Syria would bring chaos to world affairs, as the US prepared to increase pressure on Russia with new economic sanctions.

On Saturday, the United States, France and Britain launched 105 missiles targeting what the Pentagon said were three chemical weapons facilities in Syria in retaliation for a suspected poison gas attack in Douma on 7 April.The Syrian government and its ally Russia have denied involvement in any such attack.

Back home, investors will keep an eye on March quarter results which are expected to see revival post the aftermath of disruptions caused by implementation of the goods and services tax (GST). Some of the key earnings this week are Tata Consultancy Services Ltd, ACC Ltd, HDFC Bank Ltd, IndusInd Bank Ltd and HDFC Standard Life.

Devang Mehta, head-equity advisory, Centrum Wealth Management said, “All eyes will now be on the fourth quarter earnings season which will set the tone for the market in the medium term. Q4FY18 results are expected to be an extension of early signs of growth revival that was witnessed in the preceding quarter.”

According to Nagaraj Shetti, technical research analyst, HDFC Securities, the near term trend of Nifty continues to be positive and the next upside levels to be watched for coming week is 10,630 levels. “The intermediate trend of Nifty is still down, the upside bounce of the last three weeks has not changed the broader negative status of the markets,” he said.

Stock specifically, Infosys Ltd will be in focus on Monday after it announced Q4 results last week. Mint reported in the January-March period, Infosys reported a 1.8% sequential rise in dollar revenue to $2.8 billion. In FY19, Infosys expects to grow 6-8% in constant currency terms and expects a 7-9% dollar revenue growth at an operating margin of 22-24%.

UCO Bank shares may also react as the Central Bureau of Investigation (CBI) has booked its former chairman and managing director Arun Kaul and others for allegedly cheating the bank to the tune of Rs621 crore, according to PTI.

On macro front, the government will release inflation data based on wholesale price index (WPI) for March on Monday. Wholesale prices rose by 2.48% year-on-year in February, after a 2.84% increase in the prior month.

Reuters contributed to this story.

First Published: Mon, Apr 16 2018. 09 44 AM IST

Source: livemint