Financials led the gainers with SBI and HDFC rising nearly 2 per cent. Macro-economic data points, coupled with fourth quarter (Q4) earning results, are expected to influence the Indian equity markets during this week.
According to market observers, the US Fed's open market committee meet along with the trajectory of global crude oil prices and the rupee's movement against the US dollar can trigger volatility during the week's trade sessions. "The earnings momentum would again be critical since HDFC, Kotak Bank and Dabur will be releasing their numbers. For PSU and other banks, the key question is whether the peak in NPA (non-performing assets) reporting cycle is near," said Devendra Nevgi, Founder and Principal Partner, Delta Global Partners.
Companies like HDFC, Kotak Mahindra Bank, HCL Technologies, Hero MotoCorp, Interglobe Aviation, Marico, Welspun Corp and Adani Ports and Special Economic Zone are expected to announce their Q4 earning results this week.
Asian shares extended gains today as tensions in the Korean Peninsula eased and first-quarter earnings shone, although some investors were cautious about the outlook amid the backdrop of a simmering US-China trade dispute. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.9 percent after gaining more than 1 percent on Friday.
For the domestic markets, "earnings and (the Karnataka) election will be the main triggers for the market while investors will have to keep an eye on domestic headwinds like rise in oil price and rupee movement," said Vinod Nair, head of Research at Geojit Financial Services.
Deepak Jasani, Head of Retail Research for HDFC Securities, said: "Technically, the near-term trend of Nifty is positive and one may expect further upside in the early part of this week. Nifty could face resistance at the 10,750-10,800 band for the next week."
Last week, healthy Q4 earnings lifted the benchmark equity indices as they settled at their highest closing levels in over three months.
The domestic bonds and currency markets are closed today for a public holiday. On Friday, the benchmark 10-year bond yield fell to Rs 95.97, yielding 7.77 per cent, from Rs 96.05 and a 7.76 per cent yield at the previous close, while the rupee settled higher at 66.66/66.67 per dollar as against 66.75/66.76 at previous close.
On Friday, the broader NSE Nifty rose 0.70 per cent to 10,692 while the BSE Sensex gained 0.74 per cent to 34,969.70.
(With Agency Inputs)
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