With Earnings Behind, Market Volatility Can Be Expected: Analysts

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With Earnings Behind, Market Volatility Can Be Expected In Near Term: Analysts

Analysts say that with key domestic events now behind, the markets will take cues from global peers


With one trading session left, domestic stock markets are set to finish the week on a lower note. While the S&P BSE Sensex index has shed 270.38 points – or 0.72 per cent – in the two days in the current week, the broader NSE Nifty benchmark is down 80.25 points – or 0.72 per cent. In the previous week, the Sensex and Nifty had clocked gains of 1.25 per cent (463.69 points) and 1.02 per cent (112.3 points) respectively. Analysts say thin trade can be expected on Friday – the final day of the three-day, holiday-shortened week. The financial markets remained shut on Monday and Thursday.

Here are 10 things to know before the last trading session of the week:

  1. In other words, the Sensex and Nifty will need gains of 270.38 points and 80.25 points respectively on Friday to recover all of the weekly losses.
  2. Analysts say the domestic markets will take cues from global peers and some volatility can be expected in the coming sessions.
  3. “Friday can be a weak volume day with a positive bias as the result season is behind and the government is indicating few measures in next few weeks,” AK Prabhakar, head of research at IDBI Capital, told NDTV.
  4. The stock markets suffered sharp losses on Tuesday to break a two-day winning run, with the Sensex ending 623.75 points – or 1.66 per cent – lower at 36,958.16 and the broader Nifty finishing down 183.80 points – or 1.65 per cent – at 10,925.85.
  5. A sharp selloff across financial, auto and IT stocks dragged the indexes lower on that day, making it the worst day of the month.
  6. On Wednesday, the markets registered a strong rebound tracking global peers, after Washington delayed tariffs on some Chinese imports. The Sensex and Nifty ended 0.96 per cent and 0.95 per cent higher on that day.
  7. Gains in energy sector supported the markets on both days, led by Reliance Industries, which is up 10.87 per cent for the week. That has contributed to a 2.89 per cent rise in the NSE Nifty Energy index – which comprises petroleum, gas and power stocks – during this period.
  8. On Tuesday, Reliance Industries shares saw their biggest intraday rise in a more than a decade, a day after the conglomerate set a target to reach zero net debt within 18 months and vowed to reward shareholders with higher dividends and periodic bonus issues.
  9. “Market participants would keep a watch on movement of crude oil price and rupee/dollar,” said Ajit Mishra, vice president-research, Religare Broking. “Besides, progress on the US-China trade talks would boost investor sentiment.”
  10. The Donald Trump administration said on Tuesday that the US would hold off on imposing additional 10 per cent tariffs on key Chinese goods, including laptops and cellphones – tariffs that were originally set to go into effect next month. That brought some relief to global markets rattled by a bruising trade conflict.

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