Geopolitical cues, earnings, foreign inflows & more to keep Dalal Street busy
Stock markets are likely to track quarterly earnings, crude oil prices, foreign investor activity and developments in the Middle East in the holiday-shortened week ahead. Rupee's movement against the US dollar will also be on investors' radar, analysts said.Indian markets have risen for two consecutive weeks, supported by a strong rally in IT stocks. However, it remains to be seen whether the gains will continue, with high crude oil prices, geopolitical uncertainty, global bond market movements and uneven market breadth keeping investors cautious."Investors are likely to focus on whether the recent rally broadens beyond IT stocks and whether the benchmark indices can sustain their gains above immediate resistance levels," Ponmudi R, CEO - Enrich Money, told PTI.Stock markets will remain closed on Tuesday for Dussehra.
Bank results put financial stocks in the spotlight
Investors will begin the week with the September-quarter results of HDFC Bank, ICICI Bank and Axis Bank in focus. The three lenders reported higher profits, although the extent of growth varied.HDFC Bank, India's largest private sector lender, recorded a 5.55 per cent rise in consolidated net profit to Rs 20,700 crore. It pointed out that the impact on treasury operations had restricted profit growth.
ICICI Bank reported consolidated net profit of Rs 16,333.18 crore, an increase of 22.28 per cent from Rs 13,357.06 crore in the corresponding quarter a year ago.Axis Bank's net profit rose 39.4 per cent to Rs 7,704.67 crore in the second quarter of 2026-27, helped by higher core income and improved asset quality.The earnings calendar will remain active through the week, with Bajaj Finance, UltraTech Cement, Hindustan Zinc, Union Bank of India, IREDA, Infosys, Coforge, Crisil and Swiggy scheduled to announce their results."Banking stocks will be in focus following the weekend results from HDFC Bank, ICICI Bank and Axis Bank. With the Q2 FY27 earnings season gathering pace, stock and sector-specific action is likely to continue, with Bajaj Finance, UltraTech Cement, Hindustan Zinc, Union Bank of India, IREDA, Infosys, Coforge, Crisil and Swiggy among the companies scheduled to report results this week," Siddhartha Khemka - head of research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
Global developments and foreign flows under watch
The outlook for domestic equities will also depend on movements in international markets. US Treasury yields, crude oil prices and developments in the Middle East are among the factors expected to influence trading.Their implications for imported inflation, rupee and corporate profitability will remain important considerations. Foreign institutional investor activity and rupee-dollar trend will also be closely monitored to determine whether the recent market recovery can be sustained."On the global front, movements in US Treasury yields, crude oil prices and geopolitical developments will remain important market drivers, given their implications for imported inflation, the rupee and corporate profitability. FII activity and currency movements will also be closely watched to assess the sustainability of the recent recovery," Ajit Mishra, SVP Research, Religare Broking, said.Meanwhile, Dalal Street ended the previous week in green, with Sensex gaining 2,256.94 points, or 3.11 per cent, and the Nifty climbing 625.7 points, or 2.77 per cent.
Both indices have now advanced for two consecutive weeks.The recovery, led by information technology stocks, has improved market momentum. However, investors will need to assess whether the gains can hold and extend to other sectors. Elevated crude oil prices, geopolitical uncertainty, movements in global bond markets and uneven market breadth remain concerns.