Debasis Mohapatra
Bengaluru, 12 April
Indian market will factor in geopolitical volatility, key corporate earnings, and FII flows next week as investors getting ready for heavy news flow impacting market sentiment to a great extent.
Here are some factors to watch out for:
1) Middle East conflict and oil prices:
After the talks between the US and Iran collapsed, the US President has threatened to put a naval blockade in the Strait of Hormuz. It means no ship will be allowed to enter and exit if the naval blockade comes into force. If such a military plan gets executed by the US, oil prices will certainly see a spike. Brent Crude settled at $95.20 per barrel on 10th April as risks premium eased owing to easing tensions in the wake of Iran-US talks. However, prices are likely to shoot up as tensions resurfaced with fragile ceasefire on play.
2) Key Corporate earnings:
Large banks like HDFC Bank, ICICI Bank; financial institutions like ICICI Prudential, HDFC Life, ICICI Prudential Life and IT major, Wipro will announce their results this week. These results will weigh on investors’ sentiments and determine market movement.
3) FII flows:
FII remained net sellers last week with around Rs 18,900 worth of outflows recorded during this period. However, provisional data showed that FII turned net buyer on Friday. It has to be seen how FIIs behave this week, taking cues from the global events. FIIs were also net sellers in the debt segment last week.
4) News flow:
News flow with regard to Middle East conflict is likely to determine the investors’ sentiment to a great extent. Since the beginning of the war in Feb, global markets have been on edge with every social media post of US President and Iranian army. However, if the conflict sees any kind of fresh attempt towards resolution, a relief rally is likely.
