A slew of reports suggesting a significant slowdown of the Indian economy, profit taking and a weak earnings guidance from Infosys dragged down stock prices on the Indian bourses last week and the mood is most likely to be cautious with a somewhat negative bias for a better part of the coming week as well.
With a number of top notch companies scheduled to come out with their quarterly earnings reports over the next few days, activity will mostly be stock specific next week.
Reliance Industries and Axis Bank will report their quarterly earnings on Monday, 15 October 2012, and their numbers will have a significant say in the market's direction for the week. Software majors HCL Technologies and Tata Consultancy Services will announce their results on Wednesday (17 October) and Friday (19 October), respectively.
Among other top notch companies that are slated to come out with their quarterly results next week are, cement majors ACC, Ambuja Cements and Ultratech Cement, automobile maker Bajaj Auto and FMCG giant ITC.
On the economic front, the market will be eyeing the inflation data for September 2012, to be released on Monday. The wholesale price index stood at 7.55% in August 2012. The inflation data will give an idea as to what could be in store when the Reserve Bank of India unveils its second quarter monetary policy later this month. Last month, the central bank had said that it will factor in the impact of economic reforms announced by the government and the inflationary trend while framing its policy.
Besides eyeing the developments on the domestic front, investors will also be keeping a watch on global markets, keeping a tab on economic news from Europe and parts of Asia. The U.S. markets ended on a flat note on Friday despite an encouraging report on consumer sentiment and this is likely to set up a dull start for markets in the Asian region on Monday. But then, there will be plenty of action over the next few days what with some big names in Indian Inc scheduled to come out with their quarterly earnings reports.