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| D-Street may remain subdued this week |
| Press Trust Of India / Mumbai Jul 13, 2009, 00:18 IST |
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Dalal Street may remain subdued this week and seek direction from corporate India’s quarterly earnings and global markets, analysts say.
“Quarterly earnings will be the main mover for the market domestically as major financial institutions are expected to announce their figures this week giving a direction as to how the economy is moving,” Ashika Stock Brokers Research Head Paras Bothra said.
Marketmen said despite beating street expectations, Infosys lowered its full year revenue prediction, which can be a cause of concern for the market. “The market would wait for the outlook that the corporate houses gives in their results. It is ultimately the outlook that would determine the market movement in the long-term,” Unicon Financial Chief Executive G Nagpal said.
Analysts said domestic traders would track movement in the global markets cautiously, as the earnings of the US financial sector would be assessed by the earnings of Citigroup, which is expected to announce its figure on Friday.
“The markets worldwide have been falling over the last month, but our markets were holding on over expectations from the budget. But with no major reforms announced, it tanked,” Nagpal said.
The BSE Sensex fell over 1,409 points in the past week and closed at 13,504.22 points, while the NSE’s Nifty index ended with a fall of 420.35 points at 4,003.90.
Worldwide, banking stocks have been on a downslide. Earnings figures of the big banks would provide cues for the performance of domestic financial institutions. Private sector lenders Axis Bank and HDFC Bank would report their first quarter results on July 13 and July 16, respectively.
On Friday, the US market ended in the positive zone, with the Dow Jones Industrial Average dropping 36.65 points to 8,146.52 and the Standard & Poor’s 500 Index sliding 0.40 per cent to 879.13 points.
“The market would closely watch for an announcement from the government in terms of reformist measures which they anticipated in the budget. Any such trigger can bring a bounce back in the market,” Bothra added.
Most analysts expect investors to remain cautious and the overall trend to remain volatile until a clear sign emerges about improvement in global cues, besides better corporate earnings for the current quarter.
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