Corporate earnings, IIP data to guide markets: Experts

IIP numbers are likely to decline and fall in line with earlier growth trend of Nov-Dec'12'

Domestic equity markets are likely to remain sluggish this week with trading sentiment expected to be dictated by fourth quarter earnings season, which begins with Infosys results on Friday, say analysts.
    
Industrial production numbers, which is due on Friday, may also have some impact on the trading sentiment this week as IIP data is likely to be a key input for RBI's next policy review on May 3.
    
Based on the initial indicators and monthly momentum in IIP, February 2013 number is expected to decline and fall in line with the earlier growth trend of November-December'12, said Karvy Stock Broking Analyst Kruti Shah.

    

"Last week was terrible and it appears like investors are approaching FY14 with uncertainty and hesitation to take long calls. Market performance of last two days is telling that mood will remain bearish going ahead," said Vikas Jain, Founder Aditya Trading Solutions (ATS).
    
Eyes will be on Nifty, whether it breaks its November low of 5,548 next week and if it does, we may get to see more downside, he added.
    
The benchmark Sensex had lost 2% last week amid weak global cues following eurozone debt crisis and capital outflows. Nifty shed 2.28% or over 129 points.

    
IIP, CPI numbers apart from Infosys earnings will decide the force of pullback in the market going ahead, Jain said.
    
Focus of the markets would also now be on government policy moves in the budget session and global developments such as political uncertainty in Italy and monetary stimulus by Japan, said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
    
Besides, Indian markets will also closely track foreign fund activity over the week. Foreign institutional investors have pumped in just Rs 639 crore in the Indian stock market so far this month amid talks of a big sell-off by certain FIIs.

    
"Political uncertainties along with concerns of continuing slow sales growth in many segments of economy has led investors to take a cautionary approach and are seen booking profits on every rally," said Rakesh Goel, Senior Vice President, Bonanza Portfolio Ltd.
    
Meanwhile, the unemployment rate in the United States has dropped to 7.6% in March, as against 7.7% the previous month, with addition of some 88,000 jobs. Asian markets may on Monday react to the US jobs data.