Derivatives expiry will affect investors sentiments in India.
The Indian equity markets is set to face another volatile week ahead, as the ongoing flight of foreign funds is expected to continue on the back of latest taxation surcharge on the super rich category along with subdued quarterly earning numbers.
Market observers opined that monsoon progress coupled with derivatives expiry will also affect investors sentiments.
“Markers are likely to remain volatile heading into the expiry on July 25. However, markets seems to be hitting important area of support on most indices,” said Sahil Kapoor, Chief Market Strategist-Research, Edelweiss Investor Research.
“Expect stocks to stabilise this week and Nifty to head towards 11,650 points by end of the month.
Till date, an outflow of over Rs 5,500 crore has taken place in the month of July, which is the highest this year. The surcharge was announced on July 5 in full-Budget 2019-20.
Besides, investors will also look out for the upcoming Q1 results.
According to SMC Investments & Advisors Chairman and Managing Director D.K. Aggarwal: “Markets have moved sideways to lower in the first week of earnings, and it is expected that earnings season could deliver more stock specific movements in the market.” Companies such as Larsen & Toubro, TVS Motor Company, Hindustan Unilever, Zee Entertainment Enterprises, IDFC First Bank, Ambuja Cements, Bank of Baroda, Biocon, Mphasis, Tata Motors, ABB India, Bajaj Auto, Maruti Suzuki India, ICICI Bank are expected to announce their Q1 earning results in the coming week.
“The week ahead will focus on results from heavy weights like HUL, ICICI Bank, Tata Motors and L&T,” said Deepak Jasani, Head of Retail Research for HDFC Securities.