Indian Markets expected to remain range-bound this week - Eastern Financiers

Markets next week is expected to remain range-bound as we come towards the end of the earnings season and there are not many triggers for the market in the near-term. The only important macro-data that the market participants would be closely watching out is the inflation number for the month of April, which would get announced during the week. Apart from this, markets would also be reacting to the fourth quarter numbers of Corporates that would be coming during the week. Also, FII activity and the movement of the INR would be taken note-off.

Markets would continue to take cues from the Q4F13 numbers that would be trickling in next week. Fourth quarter results of almost 500-Corporates that have been announced so far shows that while the top-line growth stood at eight percent, the bottom-line growth came in at six percent on Year-on-Year basis, in-line with expectations. Some of the Corporates that would be announcing their results for the quarter ended March 31-2013 includes ITC Limited, Bajaj Auto, Reliance Capital, Satyam Computers, Bajaj Finserv, United Spirits, VIP Industries, R. Infra, Amara Raja Batteries, etc.

The most important data that would shape the market trajectory next week is the Inflation numbers, based on the Wholesale Price Index, for the month of April. Inflation at the retail level would also get announced during the week. Pressured by almost overall downward pressure and deflation in vegetables, the Wholesale price index (WPI) inflation fell to around 40-month low of 5.96 % in March from 6.84 % in the previous month, much lower than RBI's projection of 6.8 %.%. Inflation has averaged 7.3 % in 2012-13, sharply lower than 8.9 % in the previous financial year. Retail inflation declined to 10.39 per cent in March, snapping the five month rising trend, as prices of vegetables and protein based items eased. The Consumer Price Index (CPI) based inflation was at 10.91 per cent in February. The inflation, however, continued to remain in the double digit terrain for the fourth consecutive month in March. For April, the headline WPI-Inflation is expected to ease further from the March figure. Retail Inflation is also expected to reflect the downward trend in prices.

Global Cues that would guide the course of the markets next week includes US Core Retail Sales, German CPI, German ZEW Economic Sentiment, European Industrial Production, German GDP, Japan GDP, US Core CPI, etc.

Corporates Earnings and Inflation at the retail & the wholesale level would provide the primary triggers for the markets next week. Developments in the Global markets & Commodity Prices would also be watched out by the market participants.

Source : Equity Bulls

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