Mumbai: The ongoing earnings results season, along with the heightened geo-political tensions in the Middle East and a key macro-economic inflation data point are expected to influence the Indian equity markets' trajectory during the coming week, analysts opined.
"Next week the focus will again be on earnings, with IndusInd Bank setting the tone for bank earnings, especially on the fresh loan loss provisions," Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
"The oil prices would be watched closely for any flare-up due to geo-political (events). Some of the macro-data has been encouraging, which would keep the sentiment buoyant."
Companies like ACC, Mindtree, Cyient and Tata Consultancy Services are expected to announce their fourth quarter (Q4) earning results in the coming week.
"The earnings recovery was elusive for the last few years, even though the market scaled new heights at every interval," Vinod Nair, Head Of Research at Geojit Financial Services, told IANS.
"However, the last two quarters have given some ray of hope to investors for a pick-up in earnings given better-than-expected GDP growth and normalisation in GST implementation. Q4 PAT growth expectation for Nifty50 and Sensex companies is around 15 per cent YoY."
According to D.K. Aggarwal, Chairman and Managing Director of SMC Investments & Advisors: "The upturn in the economy and a favourable base effect notwithstanding, the Q4FY18 earnings, particularly from FMCG companies, are expected to see a healthy growth."
"Nifty is expected to move in the range of 10,300-10,600 points and Bank Nifty to trade in the range of 24,700-25,300 points."
Besides the Q4 results, investors will look out for the upcoming macro-economic data points -- Wholesale Price Index -- on Monday. The Balance of Trade figures will also influence sentiments. The trade data was released after the close of market hours on Friday.