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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Might of Indian military felt in Rawalpindi: Rajnath Singh on Operation Sindoor
New Delhi, May 11 (PTI): Under Operation Sindoor, Indian armed forces not only struck Pakistani military bases near the border but their might was even felt in Rawalpindi where the headquarters of the Pakistani Army is located, Defence Minister Rajnath Singh said on Sunday.
He said the Indian military has punished anti-India forces and terrorists who had wiped off the vermilion of many families through the Pahalgam terror attack.
Speaking virtually at an event in Lucknow to inaugurate a BrahMos production unit, the defence minister said Operation Sindoor is not just a military action, but a symbol of India's political, social and strategic will against terrorism.
Operation Sindoor was launched on early May 7 to destroy nine terror infrastructures in Pakistan and Pakistan-occupied-Kashmir in retaliation to the Pahalgam terror attack. All subsequent retaliations to Pakistani offensives were carried out under Operation Sindoor.
India and Pakistan on Saturday announced reaching an understanding to stop all firings and military actions on land, air and sea, with immediate effect.
Singh said the entire country is "congratulating the Indian military for success of the operation.
"This operation is a demonstration of India's strong will against terrorism and also the capability and determination of the military power," he said.
"We have shown that whenever India takes any action against terrorism, even the land across the border will not be safe for the terrorists and their masters," he said.
Singh said Indian forces launched Operation Sindoor with the aim of destroying the terrorist infrastructure in Pakistan.
"We never targeted their civilians. But Pakistan not only targeted civilian areas of India but also tried to attack temples, gurudwaras and churches," he noted.
"The Indian Army has displayed valour and courage as well as restraint and has given a befitting reply by attacking many of Pakistan's military bases," he said.
"We not only took action against the military bases near the border but the threat of Indian forces was felt even in Rawalpindi where the headquarters of the Pakistani army is located," he added.
The defence minister said the whole world saw the consequences of committing and getting terrorist incidents carried out in India.
After the Uri incident, our army entered Pakistan and carried out surgical strikes, after the Pulwama attack, we carried out Balakot air strikes, and now the world is seeing how India entered Pakistan and carried out multiple strikes following the Pahalgam attack, he said.
"Following the policy of zero tolerance against terrorism, our Prime Minister Narendra Modi has made it clear that this is the new India which will take effective action against terrorism on both sides of the border," he said.
