“This week, all eyes will be on the GST Bill in Parliament, next batch of Q1 earnings and progress of the monsoon. The start of the monsoon session of Parliament from Monday will add to anxiety as hopes are high over the passage of the Goods and Services Tax (GST) Bill in coming weeks,” said Vijay Singhania, founder-director of Trade Smart Online.
Initially, the markets will react to the earnings of oil and gas major Reliance Industries in early trade on Monday, he added. RIL reported a bigger-than-expected 18 per cent jump in June quarter net profit after market hours on Friday.
Consolidated net profit at Rs 7,113 crore, or Rs 24.1 per share, in April-June was 18.1 per cent higher than Rs 6,024 crore in the corresponding period of the previous fiscal year, RIL said in a statement.
Moreover, the next batch of earnings of blue chip companies will have a bearing on market sentiment during the week, they added.
Hindustan Unilever, UltraTech Cement, Wipro, Axis Bank, Cairn India and HDFC Bank are due to announce their earnings for the June quarter during the week.
“Ultimately, everything boils down to one thing: earnings growth. Of course, management guidance and outlook for the current year will be an important factor to watch out for,” Mr Singhania added.
Over the week ended July 15, the benchmark Sensex rallied 709.60 points to finish at 27,836.50 while the broader Nifty gained 218.20 points to end at 8,541.40.
“FII trading activities, movement of the rupee versus the dollar and crude price in the international market are going to be the key,” said Rohit Gadia, founder and CEO of CapitalVia Global Research.
