Inflation data; TCS, RIL earnings key for stock markets

Inflation data, quarterly results of bluechips like TCS and RIL are expected to keep markets volatile in a holiday-shortened week ahead, say experts. Stock markets will remain closed on Tuesday for Baba Saheb Ambedkar Jayanti.

Besides, investment trend by foreign investors, movement of rupee against dollar and crude oil prices will also dictate trends on the bourses.

“For now, market is keeping a close watch on Q4 earnings season for its short-term direction, which kick-starts this week,” said Hitesh Agrawal, Head Research at Reliance Securities.

“Further, notwithstanding any policy specific developments, we expect heightened stock-specific action based on earnings delivered by companies.

CPI and WPI inflation data are other points which could induce some volatility in the market,” he said.

Markets on Monday are expected to react to IIP data for February that was announced post-market hours on Friday.

Raising hopes of investment cycle uptick, industrial growth jumped to nine-month high of 5 per cent in February on better performance of manufacturing sector and higher offtake of consumer durables as well as capital goods.

“Though majority of market players are expecting subdued results this quarter, major trigger lies with the earning guidance for the next first half of financial year.

“Besides, government will unveil crucial macroeconomic data, CPI and WPI data — on April 13 and 14, respectively,” said Jayant Manglik, President of retail distribution at Religare Securities.

Participants would first react to the IIP data, he added.

India’s largest software services firm Tata Consultancy Services will announce its set of numbers on April 16.

Reliance Industries’ results will come out on April 17. For the week, benchmark BSE Sensex ended with a gain of 619.24 points at 28,879.38.

Reliance Industries Limited (RIL)

TATA Consultancy Services ( TCS )