Quarterly earnings, global trends to steer markets this week: Report

Stock markets this week will be steered by the ongoing quarterly earnings season and global trends with the focus shifting to the US elections, analysts said.

Markets may also witness volatility amid derivatives expiry this week.

"Going ahead, market is likely to remain in a tight range as US election draws near. We expect more stock-specific action given the prevailing earnings season and mixed global cues. Apart from the US election, investors would watch out for ECB and Bank of Japan (BoJ) monetary policy statement and US GDP data this week," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

All eyes are on US markets for updates on the stimulus package and upcoming presidential elections, Ajit Mishra, VP - Research, Religare Broking Ltd said.

"News on Covid-19 cases in Europe will also remain on the participants'' radar. Volatility usually remains high in stocks during the earnings and we''re seeing a similar trend," Mishra said.

Investors would monitor quarterly earnings data from frontline companies like Kotak Mahindra Bank, Bharti Airtel, Tata Motors, Axis Bank, Hero MotoCorp, Bank Of Baroda, Maruti Suzuki India, Indusind Bank and RIL.

"We believe markets, both global and domestic will focus on the upcoming US elections and expect volatility to spike in the near term," said Vinod Nair, Head of Research at Geojit Financial Services.

On a weekly basis, the Sensex rallied 702.52 points or 1.75 per cent.

Other major factors like rupee-dollar trend and Brent crude movement will also be crucial for market direction. 

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel