In this truncated week, where the markets will remain closed on Thursday on account of Dussera, market participants will take cues from the second quarter earnings of blue chip companies like UltraTech Cement, ACC, Hero Motocorp, Bajaj Auto, Wipro, Cairn India, Idea Cellular and HDFC Bank.
The better than expected results of Reliance is likely to boost market sentiment in early trade and help the indices surge ahead. “Participants will react to the numbers in early trade on Monday and that would set the tone for the day,” said Jayant Manglik, President (Retail Distribution), Religare Securities. Reliance Industries on Friday reported its highest ever quarterly net profit of Rs 6,720 crore for the quarter ending September 30.
"Next batch of corporate earnings and management outlook will set the tone this week. Apart from September, 2015 earnings, new political developments emerging from Bihar assembly elections and sentiments in the global markets will also affect the sentiments," said Vijay Singhania, Founder- Director, Trade Smart Online.
“Government spending has increased and that is currently supporting growth. We believe that, the recent rate cuts and various administrative / executive decisions by the Government should lead to higher investments by the private sector. Improvement in private sector capex will likely result in better earnings growth and valuations for the relevant sectors,” said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
Both, the BSE Sensex and Nifty posted their third consecutive weekly gain last Friday and going ahead, the trend is likely to continue, according to experts.
"Macroeconomic data, trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar and crude oil price movement and upcoming quarterly results of companies like Ultratech cement, HCL Technologies, Heromoto Corp, ACC, IDEA, HDFC Bank, Bajaj Auto, Asian paints, etc. will dictate trend of the market in near term," said Vivek Gupta, CMT - Director Research, CapitalVia Global Research Limited.
Going ahead in the week a slew of global data too are likely to affect the market sentiments. China will announce its third quarter GDP figures today.
“On the global front, a preliminary reading of manufacturing PMI indices of Japan, Euro zone and the US will be announced on Friday. While on Monday, markets will react to slew of announcements of macro-economic data in China over the weekend. China will announce data on Q3 GDP figures, industrial production for September and retail sales for September on Monday,” said Vijay Singhania, Founder-Director, Trade Smart Online.