Stock markets are likely to see volatile trading this week amid a slew of earnings from blue chip companies, including Hero MotoCorp and ICICI Bank, that are likely to dictate the trend on bourses, say experts.
"For this week, HDFC, HUL, ICICI Bank, NTPC, GAIL and Cairn India will announce their results and stock specific action will be seen. Also, because of market holiday on Wednesday, some profit-booking is also likely," Rakesh Goyal Vice President Bonanza Portfolio said.
Investment decisions in stocks by some participants also appear to be on hold ahead of RBI's policy meet on October 30.
Experts feel the current macro indicators - including inflation, current account deficit, banks' deposit growth and loan deposit ratios - don't provide room for quick rate cuts.
"Moreover, the drivers of inflation - such as government spending growth and rural wages - also do not indicate any quick potential improvement in the inflation outlook," said Chetan Ahya, Asia-Pacific Economist, Morgan Stanley.
Stock markets, however, are awaiting for cues on rate-cut.
"Domestically, a lot would depend on RBI policy meeting which is scheduled to be held in the coming weeks. The ongoing results season would also continue to influence the mood on the street," said Amar Ambani, Head of Research, IIFL.
Trading volumes are expected to be on the weaker side as markets will remain closed on Wednesday on account of Dussera, while the expiry of future and options contracts on Thursday could lead to sharp movements, traders said.
According to Shubham Agarwal, Associate VP & Senior Technical Equities Analyst, Motilal Oswal Securities: "Time correction can be expected to continue...Rupee has depreciated significantly which is leading to negative sentiments."
The rupee plunged by 103 paise to close at one-month low of 53.84 against the US dollar last week due to heavy demand of the US currency and slowdown in capital inflows.
