Geo-political risks, ongoing Q4 results to steer equity indices
Mumbai, May 6: Geopolitical risks, coupled with the ongoing quarterly results season and macro-economic data points, are expected to influence the trajectory of key Indian equity indices next week, analysts opined.
According to market observers, even the upcoming state assembly election in Karnataka, along with crude oil price fluctuations as well as the direction of foreign fund flows and the rupee's movement against the US dollar will impact investors' risk-taking appetite.
"Two important events will drive the market sentiments during the next two weeks. First, is the outcome of the US-Iran nuclear deal and the other is the Karnataka elections, especially BJP's performance,"said Devendra Nevgi, Founder and Principal Partner, Delta Global Partners.
"The (expected) breakdown of the US-Iran deal and the ensuing sanctions on Iran would lead to a rise in crude oil prices and in geopolitical risks. And a poor performance by BJP in Karnataka would raise the political risk premium on India."
Besides these, the ongoing results season will play an important role in determining the equity indices' movement.
Companies like ICICI Bank, Pfizer, Tata Chemicals, ABB India, Sun Pharma Advanced Research, Eicher Motors, Jindal Steel & Power, Oriental Bank of Commerce, Adani Transmission, Apollo Tyres, Asian Paints and SpiceJet are expected to announce their Q4 earning results next week.
"Result season will gather pace in the coming weeks with major heavyweights set to unveil their results; as per recent history, results during the second phase are dull," said Vinod Nair, Head of Research at Geojit Financial Services.
Apart from Q4 results, investors will look out for upcoming macro-economic data points such as the country's fiscal deficit numbers and industrial production figures which will be released during the week starting May 7.
In addition, Nair said that outflow of "foreign funds due to rich valuation is a concern to the market".
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 2,688.05 crore, while the domestic institutional investors (DIIs) purchased stocks worth Rs 932.99 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 1,351.85 crore, or $202.56 million, during May 2-4.
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Woman assaulted during panchayat meeting in Davanagere: Video goes viral; six held
Davanagere: An incident of a woman who faced charges of having an immoral relationship being attacked on the streets during a panchayat meeting in Tavarakere village of Channagiri taluk came to light recently, with six suspects being arrested in the case.
The arrested men, identified Muhammad Niaz, Mohammad Ghous Peer, Chand Peer, Inayatullah, Dastagir and Rasool TR, are currently being questioned by the police.
On April 9, the locals, suspecting the woman to be in an immoral relationship, allegedly summoned her to a mosque run by the Panchayat. When the woman arrived, some of the committee members are reported to have dragged her to the streets and assaulted her indiscriminately.
The locals also filmed the scene on their mobile phones and uploaded it on social media. The matter came to light after the video went viral on social media.
The victim filed a case at Channagiri Police Station on April 11 and the police are investigating the matter.
