Market outlook: Geo-political strains, Q4 results to drive markets

Trend from global markets amid brewing geo-political trouble and corporate quarterly results will continue to steer stocks this week, say experts.

"Across the globe, investors had many reasons to worry about rising geo-political tensions and situation on the Korean Peninsula. Any key development on that front will affect global market sentiment and Indian markets too will react accordingly," said Vijay Singhania, Founder Director, Trade Smart Online.

"Going ahead, markets will focus on quarterly results. Valuations are high and quarterly results will need to meet or beat expectations if markets have to sustain at current levels and move up."

Dipen Shah, Senior Vice President, PCG Research, Kotak Securities, feels that management commentary holds the key. "Management commentary on the lingering impact of demonetisation and their outlook for 2017-18 will be key factors to watch out for," Shah said.

This week, Yes Bank, Hindustan Zinc, MindTree, ACC and HDFC Bank are due to come with their report cards.

Over the past week, the Sensex fell 245.16 points, or 0.82 per cent, while the Nifty was down 47.50 points, or 0.51 per cent.

"Going ahead, we foresee benchmark indices to take cues from earnings and react accordingly. Further, important macroeconomic data i.E. WPI are also scheduled on April 17. Additionally, any further geo-political tension, which has been a dampener of late for the benchmark indices, could impact market negatively," said Abnish Kumar Sudhanshu, Director and Research Head, Amrapali Aadya Trading & Investments.

"Going ahead, the performance of fourth quarter earnings will define the trend of the market," said Vinod Nair, Head of Research, Geojit Financial Services.