After Over 1% Weekly Gain, Earnings Likely To Set Tone For Markets: Analysts

Dalal Street may still be some distance away from regaining its confidence amid the coronavirus pandemic, but data shows benchmark index S&P BSE Sensex rose more than 1 per cent last week. On a weekly basis, the 30-share Sensex added 429.10 points or 1.37 per cent at 31,588.72. The uptick in the markets can be attributed to the heavyweights, as six of the 10 most valued domestic companies together added Rs 53,702.27 crore in market valuation for the week, with ICICI Bank and TCS emerging as the biggest gainers, data shows.

Reliance Industries Limited (RIL), HUL, Bharti Airtel and ITC were the other gainers from the top-10 list, while HDFC Bank, HDFC, Infosys and Kotak Mahindra Bank witnessed erosion from their market capitalisation (m-cap) for the week ended Friday. ICICI Bank's valuation jumped Rs 21,561.16 crore to Rs 2,43,350.46 crore. 

The market cap of Tata Consultancy Services (TCS) advanced Rs 15,347.25 crore to Rs 6,77,980.87 crore and that of Bharti Airtel zoomed Rs 7,201.34 crore to Rs 2,74,005.37 crore. RIL's valuation rose by Rs 3,711.77 crore to Rs 7,76,595.26 crore and that of ITC gained Rs 3,380.36 crore to reach Rs 2,31,216.87 crore.

In the ranking of top-10 firms, RIL remained the most valued firm, followed by TCS, HUL, HDFC Bank, HDFC, Bharti Airtel, Infosys, ICICI Bank, ITC and Kotak Mahindra Bank.

Earnings, Virus Trend To Set Market Tone This Week, Say Analysts

The trend in COVID-19 cases as well as corporate earnings will set the tone for equity markets this week, analysts told news agency Press Trust of India.

Participants are also hopeful of more stimulus measures from the government to prop up growth amid the coronavirus crisis, they added.

Economic activities are set to resume in a graded manner from April 20, which could also lift market sentiment.

"Currently, a major part of the world population is under lockdown and it is expected that markets may not take any material direction till the lockdown ends. The moment lockdown ends, market would start reacting to the ground reality. In the coming weeks, corporates are expected to announce their quarterly earnings performance," said Jimeet Modi, founder and CEO, SAMCO Securities & StockNote.

Infosys and ACC are the two major companies scheduled to announce their earnings this week.

According to Ajit Mishra, VP-research at Religare Broking, "Announcements from the earnings front will continue to trigger volatile swings on the stock-specific front."

Other key factors like Brent crude trend, investment pattern by overseas investors and rupee-dollar movement would also influence trading, they added.

Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services, said, "Technically, immediate resistance for Nifty is placed at 9,400-9,500 zone and a sustainable move above the same may result into continuation of ongoing pull-back move towards 9,800 and then 10,000 mark. On the downside, support is shifting higher to 9,100 and 8,800 levels.”