Earning numbers to guide markets; land GST bills eyed too

Mumbai: Stock markets, which have been on a downward spiral for the last few weeks, would look at the next batch of quarterly earning numbers and proceedings in Parliament for further cues, say experts. 

Besides, foreign fund inflows trend and movement of rupee would also influence trading. 

This week companies like Hindustan Unilever, PNB and Hero MotoCorp will come out with their quarterly numbers. 

Market participants said monthly auto sales figures for April will keep the sector counters on traders’ radar when the markets open for trade on Monday. 

“Proceedings in Parliament will be in focus. It remains to be seen if the government is able to pass the Land Acquisition Bill during the ongoing session,” said Jayant Manglik, President-retail distribution at Religare Securities. 

The outcome of monthly manufacturing and services sector surveys will be in focus too, he said. 

Market is likely to move after closure of Parliament session. 

Meanwhile, if any bills like GST or Land Acquisition get passed then it will be fodder for the bulls, said a broker. 

The benchmark BSE Sensex closed the week at 27,011.31, recording a fall of 426.63 points or 1.55 %. 

Lower-than-expected fourth quarter earnings by some key corporates so far, prediction of below normal monsoon and profit-booking by wary operators in the absence of any positive trigger continued to weigh on market sentiment. 

“Market is likely to witness a rally, and Finance Minister’s comment on Minimum Alternative Tax will add to the sentiment,” said CNI Research CMD Kishor Ostwal. 

In a debate on Finance Bill in Parliament on Thursday, Finance Minister Arun Jaitley had said all capital gains from sale of securities as well as royalties, interest, technical services fee earned by foreign companies will be exempt from MAT, if the normal tax rate on such income is lower than 18.5 %.