Q4 earnings to elections, top factors that may drive markets this week

Investors this week will keep a tab on the Q4 earnings of major auto, financial, telecom and realty companies while F&O expiry and the third phase of the 2019 Lok Sabha elections will also be keenly watched.

Companies including Indiabulls Housing Finance Ltd, Bharti Infratel Ltd, Axis Bank Ltd, Maruti Suzuki India Ltd, Hero Motocorp Ltd, Tata Steel Ltd, and Yes Bank Ltd, among others will announce their March quarter earnings this week. 

On the political front, the third phase of the 2019 Lok Sabha elections will be conducted on April 23 where 116 constituencies spread across 13 states and Union Territories including Assam, Bihar, West Bengal, Jammu and Kashmir, Uttar Pradesh, Maharashtra, Kerala, and Goa will go to poll.

Futures and Options contracts will expire on April 25 (Thursday) which is expected to keep traders busy with rolling over of contracts.

On the global front, the week will see central budget announcement and Debt to GDP estimate by the European Union on April 23 (Tuesday), Industry activity index and Interest rate decision by Japan on April 24 (Wednesday) and April 25 (Thursday) respectively and growth rate for Q1CY19 and inflation expectation by the US on April 26 (Friday).

Apart from this, investors will also keep an eye on oil prices, the level of rupee against the US dollar, and FII inflows.

Last week, BSE Sensex and NSE Nifty50 closed at 39,140 and 11,753, respectively, after the Sensex touched an all-time high of 39,487.45 while the broader index Nifty scaled 11,856.15 during the week.

Global cues

Asian stocks were steady on Monday as investors awaited the return of major financial markets from the Good Friday holiday. Equities markets were subdued, with MSCI’s broadest index of Asia-Pacific shares outside Japan trading little changed.

Stocks in focus

Q4 results: Abirami Financial Services (India) Ltd, Ashika Credit Capital Ltd, AU Small Finance Bank Limited, Goa Carbon Limited, and others will announce their March earnings on Monday

Reliance Industries announced its Q4 results on Thursday after market hours. Its net profit in January-March, at Rs 10,362 crore, or Rs 17.5 a share, was 9.8 per cent higher than Rs 9,438 crore, or 15.9 per share, in the same quarter a year earlier

HDFC Bank also announced its March quarter earnings on Saturday and reported a rise in net profit by nearly 23 per cent QoQ. The gross NPA were 1.36 per cent of gross advances and net NPA were 0.4 per cent of net advances.

Reliance Home Finance announced that CARE Ratings (CARE) has revised its rating to BBB+ (credit watch with developing implications) for the company's long-term debt programme, market-linked debentures, subordinated debt and non-convertible debentures (NCDs) public issue.

Dr Reddy's Labs: The company's Srikakulam unit has been classified as 'Voluntary Action Indicated' (VAI) by the US FDA.

Larsen & Toubro: The Competition Commission has given approval to Schneider's acquisition of Larsen & Toubro's electrical and automation business in a Rs 14,000-crore deal.

Jet Airways management has asked the government to release Rs 175 crore to pay one-month of salary to its staff. Also, Etihad spokesperson has said Aviation Group sees significant value generation from the ownership and management of Jet Privilege Program.