Benchmark indices Sensex and Nifty, which struck their all-time high last week, are likely to experience go further up gradually but with some volatility, according to analysts. This is mainly because the earnings season is coming to an end and the Lok Sabha elections results are around the corner.
Positive earnings for the March quarter and the prospect of a stable government at the Centre could move the market up with the support of FII inflows. Tata Steel, LIC, NMDC, IRCTC and MMTC will announce their quarterly results this week.
Investor sentiment will also be influenced by trends in global markets and trading of foreign investors, say analysts. The release of economic data from the US and Japan are other factors to track. The market will also be guided by movement of Brent crude and rupee-dollar rates.
Another factor that could spark volatility in the market is the expiry of monthly derivatives on Thursday. On Friday, investors will watch out for the announcement of the GDP growth rate for the March quarter.
"We have reached the final curtain for the Q4 earnings season,” Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, told PTI, “Many companies, including names like Tata Steel, will release their financial results this week. Positive earnings from the final quarter could provide strength to the market to continue its bullish momentum. We are very close to the Lok Sabha election results, and the election verdict will give a boost to FII flows.”
Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd, told the news agency, "Overall, we expect the market to witness a gradual up-move and see some volatility this week as both election and earnings season are nearing the end.”
Vinod Nair, Head of Research, Geojit Financial Services, said there is an indication of sustained momentum in the short-term, with the large caps playing second fiddle to the broader market rally.
The previous week saw the 30-stock BSE Sensex soaring 1.89 per cent and the NSE Nifty surging 2 per cent. On Friday, Sensex struck its record intra-day high of 75,636.50 while the Nifty crossed the 23,000 milestone for the first time.
