Corporate earnings, global trends to drive market sentiment this week

On Tuesday, market may react to Reliance Industries (RIL) earnings which came in post-trading hours on Friday.

New Delhi: Corporate earnings from frontline companies such as HDFC Bank, Axis Bank and SBI as well as global factors would be the major deciding elements for the movement of the domestic equity market this week, according to analysts.

Market mood should remain buoyant in near term, given positive development on both global and domestic fronts, along with decent earnings season so far and foreign institutional investor (FII) buying interest resuming, said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services said.

"Market sentiments got bolstered as Britain and the EU finally struck an outline on the Brexit deal after intense negotiations. Even the trade tensions between the US and China is reducing, as there is momentum to finalise the initial phase of trade deal," he added.

On the domestic side, Finance Minister Nirmala Sitharaman last week hinted at more reforms to bolster the economic growth, while the government began the stake sale in public sector undertakings to fulfil the fiscal deficit.

"Thus, given positive development on both global and domestic fronts, along with decent earnings season so far and foreign institutional investor buying interest resuming, market mood should remain buoyant in near term," Khemka said.

Major earnings this week will be from HDFC Bank, HCL Tech and SBI, among others.

Bourses will remain closed on Monday due to assembly elections in Maharashtra.

On Tuesday, market may react to Reliance Industries (RIL) earnings which came in post-trading hours on Friday.

The company reported an 18.6 per cent rise in consolidated net profit to a record Rs 11,262 crore for the second quarter of the current fiscal.

"It may be volatile on Tuesday. We have Reliance results that will be factored in along with other majors such as Axis, Kotak Bank, Asian Paints, Bajaj Auto, Hero MotoCorp, Maruti, Marico, and SBI," according to Mustafa Nadeem, CEO, Epic Research.

During the last week, the Sensex advanced 1,171.30 points or 3.07 per cent.

Indian equities rose for the sixth straight session on Friday, boosted by unabated foreign fund inflows and positive Brexit developments.

"Indian equities outperformed major global markets for the week. Equity markets witnessed a sharp rally on foreign investor buying, progress in US-China trade talks and as well as a deal being reached between UK and EU on Brexit," Sanjeev Zarbade, VP PCG Research, Kotak Securities said.

Britain and the European Union have struck an outline Brexit deal after prolonged negotiations.

The deal, however, must still be formally approved by the bloc and ratified by the European and UK parliaments.

In a setback to UK Prime Minister Boris Johnson, British lawmakers on Saturday voted to back a motion that delays his Brexit deal struck with the EU.

Market sentiment will also depend on factors such as overseas investors investment trend, rupee-dollar trend and oil prices, analysts added.