Cherry pick in India Inc's results season

Buoyed by the surprise rate cut from the Reseve Bank of India, markets withstood intermittent bouts of selling to close with marginal gains during the week-ended.

With too many global uncertainties on horizon and fluid geopolitical tensions with Pakistan, analysts expect markets to remain range bound in near term. The Sensex and the Nifty ended 195 points and 87 points higher at 28,061 and 8,698.

Heightened action was seen in midcap and smallcap space. Broadly outperforming the benchmark indices, the Bombay Stock Exchange midcap and smallcap indices logged gains of 2.9 per cent and 3.5 per cent.

With the Central government pursuing reforms aggressively, observers expect robust FII inflows during the course of the year.

Market trend during the coming week laced with holidays on Tuesday and Wednesday will be dictated by the Q2 earnings season, key macro economic data like inflation, CPI and WPI, crude oil price movement and global cues.

Markets will be swayed by US Fed decisions and US Presidential election. Track developments over destabilisation of Germany’s largest bank Deutsche Bank and sharp fall in British pound.

For the week ahead, chartists predict a trading range of 27,600-28,550 and 8,525-8,875 for the benchmark indices. Support for the indices evident at 27,800 and 27,550 and 8,600 and 8,525. Second quarter earnings season is back. Investors should look at growth compared to a company’s industry and the entire market.