Quarterly earnings to dictate stock market trend

Investment trend by overseas investors, movement of rupee against dollar and crude oil price will also influence trading on bourses

The next batch of quarterly earnings of bluechip companies including Wipro and HDFC Bank would set the tone for the stock markets this week, say experts.

Besides this, investment trend by overseas investors, movement of rupee against dollar and crude oil price will also influence trading on the bourses, they added.

"This week, some big names like Hindustan Zinc, HCL Technologies, Wipro, Cairn India and HDFC Bank will announce their quarterly results," said Jayant Manglik, President of Retail distribution at Religare Securities.

Developments during the second part of the Budget session of Parliament will also be closely watched, he said.

The session will start from April 20 and would conclude on May 8.

The government's focus would be on pushing through the Land Acquisition Bill as well the Goods and Services bill when Parliament will resume this week, Manglik added.

Stock-specific action will be seen amid the announcement of earnings for the quarter ended March 2015.

"For now, market will continue to keep a close watch on the March quarter earnings' season for its short-term direction. Earnings season will gather further steam this week, which will lead to greater stock sector specific volatility," said Hitesh Agrawal - Head Research, Reliance Securities.

Experts said that markets usually see steep correction in individual stocks during the corrective phase and that reaction becomes stronger in the earning season.

"Markets are currently in the same phase," Manglik noted.

Markets on Monday would react to RIL's quarterly numbers that were announced on Friday after market hours, where the company reported its highest quarterly net profit in the fourth quarter in more than seven years.

The company's consolidated net profit in March quarter, at Rs 6,381 crore or Rs 21.7 a share, was 8.5 per cent higher than Rs 5,881 crore or Rs 20 per share profit a year ago.

Meanwhile, the benchmark BSE Sensex fell by 437.28 points to end at 28,442.10 for the week.

Concerns over Greece's mounting debt troubles kept the market under pressure, a broker said.