Q1 earnings to remain in focus; markets to see volatility

Next batch of quarterly earnings from blue-chips Maruti Suzuki, HDFC and ICICI Bank, progress of monsoon and developments in Parliament regarding GST Bill would remain in focus for stock market this week, which is likely to see bouts of volatility amid derivatives expiry, say experts.
"Next batch of Q1 FY17 earnings and derivative expiry will dominate market sentiments this week. Apart from this, progress of monsoon rains and trend in global financial markets will also affect market sentiments," said Vijay Singhania, Founder-Director, Trade Smart Online.
Other major earnings announcements slated for this week are from Dr Reddy's Lab, ACC, Bajaj Auto and Larsen & Toubro.

"Rainfall is progressing well across the country, bringing cheers to the farmers which will play an important role in reviving the growth for the country.
"Important bills lined up before the Parliament, should they be cleared, will further drive our markets into higher territory. Otherwise, it may languish with positive upward bias in the short term," said Jimeet Modi, CEO, SAMCO Securities.
"Market movement will depend on quarterly result announcements. Market is also expected to stay volatile in the week of expiry of futures contract," said Rohit Gadia, Founder and CEO, CapitalVia Global Research Ltd.

Over the past week, markets turned marginally lower, with Sensex and Nifty down 33.26 points and 0.20 points, respectively.

"If the GST bill goes through, it will be an important sentiment boost for the markets in our view.
"There would be a few more important quarterly results out in the next week and they would matter for the individual stocks but we would continue to maintain that for markets to look at Q1 more favorably, the results need to be significantly above expectations on average and that alone could act as a catalyst," said Pankaj Sharma, Head of Equities, Equirus Securities.