Quarterly results and global markets will set the trend for stocks for the major part of coming week on the Indian bourses. The progress of the southwest monsoon will be eyed as well. Movements are likely to be a bit volatile at times as near month derivatives contracts will expire on Thursday, 25 July 2013.
Several top notch companies, including ACC, Larsen & Toubro, Hero Motocorp, Hindustan Unilever, ITC, Maruti Suzuki, Yes Bank, GAIL India, Shriram Transport Finance, Cairn India, Bank of India, Bharat Electronics, Dabur India, Strides Arcolab and Zee Entertainment, are scheduled to announce their quarterly results next week.
The market will begin the week with investors reacting to Reliance Indutries Limited's quarterly results, announced after trading hours on 19 July 2013. The company reported a 19% year-on-year rise in net profit at Rs 5352 crore for the quarter ended June 2013, boosted by stronger margins in its main oil refining business and higher other income.
Sales, however, declined to Rs 87645 crore, down 4.5% year-on-year, on lower output from KG-D6 basin which recorded a 50% decline to around 15 million standard cubic metres per day. Gross refining margins stood at US$ 8.4/bbl versus US$ 7.6/bbl year-on-year.
Hectic activity is likely in the banking space. The recent strict regulations imposed by the central bank and rising NPAs are likely to weigh on sentiment to a notable extent.
Oil prices will be eyed as well. Shares from oil and automobile sectors will see some listless sessions. Some battered down metal stocks may find some support.
Though the market ended on a firm note last week, foreign institutional sellers were mostly seen pressing sales. If the trend continues, then the upside for the market looks a bit limited for now.