The market is likely to track quarterly numbers for cues for a better part of the coming week. Economic data, political news and developments in global markets too will play a key role in dictating the trend.
Despite some volatility following the central bank leaving key rates unchanged, the market managed to post moderate gains last week, thanks largely to some upbeat sales data from automobile manufactuers and a few impressive report cards from India Inc.
However, with the near term outlook for the economy remaining quite dim, a sharp and sustained upmove may remain elusive for now. Though some rallies are likely, investors may well choose to use them to trim down positions.
The market's recent gains were due largely to some hectic buying by foreign institutional investors. Still, one has to look into the fact that inflow from this set of investors came down significantly in October, from what it was a month earlier. Unless there are some positive news for the market, FIIs may well start cutting down some positions, and this could result in a few weak spells for some front line stocks that have hit new highs.
With Tata Steel, Jindal Steel & Power, Coal India and Hindalco slated to announce their quarterly resuts during the course of the week, hectic activity is likely in the metal space.
Among other the top notch companies that will release their quarterly results next week are, Cipla, Tata Power, Bharti Airtel, Tata Motors, ONGC, Ranbaxy Laboratories, Sun Pharmaceutical Industries, Reliance Infrastructure, State Bank of India and BPCL.
On the economic front, data on services sector activity in October is due for release next week. On Monday, theMarkit Economics will come out with the HSBC India Services purchasing managers' index for October.
With the U.S. markets ending notably lower on Friday, due largely to profit taking despite some upbeat economic data, Asian markets are likely to open on a negative note next week and set up a weak opening for the Indian bourses. Movements, for a better part of the week, will remain sideways.