Q3 show to steer market, volatility here to stay: experts

The next set of quarterly results from blue-chips like HDFC Bank, ICICI Bank and Bharti Airtel and the trend at global indices will be the key driving forces for the stock market in a holiday-shortened week ahead.

There may also be bouts of volatility amid derivatives expiry.

Stock markets will remain closed on Tuesday for the Republic Day.

"The trend in global markets, investment by foreign investors, movement of the rupee against the dollar, crude oil price and also third quarter results will dictate trend of the market in the near term," said Vivek Gupta, CMT, Director Research, CapitalVia Global Research Limited.
 

The prominent companies whose quarterly results are due this week are HDFC Bank, HDFC, Power Grid Corporation of India, Maruti Suzuki India, ICICI Bank, Bharti Airtel, Vedanta, NTPC, Yes Bank and L&T.

"Markets will focus on the earnings season as a majority of the numbers will come out before the close of the month. The market is expected to trade with an upward bias with intermittent profit-booking. Market is likely to crawl higher this week. There will be a lot of stock-specific movements based on the quarterly scorecard," said Jimeet Modi, CEO, SAMCO Securities.

Globally, investors are tracking the two-day US Fed policy meet on Tuesday and Wednesday.

"It is unlikely that the Fed will hike rate at this week's policy meet, given the chaos in the global market. The domestic market may undergo a consolidation phase with high volatility in the near term as we are at the doorstep of an futures and options (F&O) expiry," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.

Over the last week, the BSE Sensex closed at 24,435.66, showing a marginal loss of 19.38 points, or 0.08 per cent.