Stock markets to remain calm till Q2 results - Business News
The stock markets are expected to ease a bit when they open on Monday after the fast-paced rise last week in which the Bombay Stock Exchange Sensitive Index (Sensex) hit a new high day after day and gained 412 points.
With the second quarter (Q2) results still a week away, the markets will pause and ponder about the economic data released by the government this Friday. They will draw strength from 8.1 per cent GDP growth in the first quarter (Q1) and more than 11 per cent growth in the industrial sector.
However, the growing trade deficit which went up to 15 plus billion US dollar in Q1 compared to around five billion US dollar in the Q1 last year, is an alarming sign.
With the global crude oil prices hovering above USD 65 per barrel and no signs of coming down, the trade deficit may touch 100 billion USD for this financial year. The import of other commodities along with crude oil has also been growing at hectic pace as the industrial activity is picking up.
Also, there are reports of export suffering during the rains in Mumbai. The export figures for August and September will be keenly watched by the investors, especially the Foreign Instituional Investors (FIIs).
The FIIs flow in the equity markets will be quite crucial.
The impact of the sudden withdrawl of interest in the small cap shares due to negative sentiments in the markets will also be visible Monday onwards.
News about global crude oil prices will be the prime mover for the markets in absence of any other big events before the Q2 results. The data about results will start coming in from October 11 as Infosys announces its Q2 numbers on October 11.
With the second quarter (Q2) results still a week away, the markets will pause and ponder about the economic data released by the government this Friday. They will draw strength from 8.1 per cent GDP growth in the first quarter (Q1) and more than 11 per cent growth in the industrial sector.
However, the growing trade deficit which went up to 15 plus billion US dollar in Q1 compared to around five billion US dollar in the Q1 last year, is an alarming sign.
With the global crude oil prices hovering above USD 65 per barrel and no signs of coming down, the trade deficit may touch 100 billion USD for this financial year. The import of other commodities along with crude oil has also been growing at hectic pace as the industrial activity is picking up.
Also, there are reports of export suffering during the rains in Mumbai. The export figures for August and September will be keenly watched by the investors, especially the Foreign Instituional Investors (FIIs).
The FIIs flow in the equity markets will be quite crucial.
The impact of the sudden withdrawl of interest in the small cap shares due to negative sentiments in the markets will also be visible Monday onwards.
News about global crude oil prices will be the prime mover for the markets in absence of any other big events before the Q2 results. The data about results will start coming in from October 11 as Infosys announces its Q2 numbers on October 11.
posted by Sensex-Blog Admin at 6:16 AM
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