US Fed meeting, auto sales, Q4 results among other key factors for Street in holiday-shortened next week

The Indian markets are expected to be driven by multiple factors including April auto sales numbers, US Fed Reserve meeting, Q4 earnings in the holiday-shortened next week, according to analysts.

Besides, factors such as global and domestic manufacturing data, foreign investors flow, rupee versus dollar movement and crude oil trend may also impact the Street in the coming week.

“The coming week is a holiday-shortened one and marks the beginning of a new month too so participants will be eyeing important high-frequency data viz. auto sales, S&P Global Manufacturing PMI and Services PMI during the week,” Ajit Mishra, VP - Technical Research, Religare Broking said.

On the global front, all eyes are now on the outcome of the US Fed meet scheduled on May 3, for their stance on rates amid uncertain economic environment, the market analyst said in its note.

He further said that the market participants will first react to Kotak Bank’s result as the earnings season would gain pace.

Among the prominent names, Ambuja Cement, Tata Steel, Titan, HDFC, Dabur, Hero Motocorp and TVS Motor will announce their numbers during the week along with several others, Mishra added.

In line with Mishra’s views, Arvinder Singh Nanda, Senior Vice President, of Master Capital Services said, “Ongoing Quarterly results will be in focus as some major companies will be announcing their quarterly earnings in the days to come.”

“Some key global events will also be in focus such as the US manufacturing and services PMI for April, the Fed rate decision, US Initial jobless claim and the US unemployment rate,” Nanda said.

Similarly, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd said, “Macroeconomic numbers will keep the market mood subdued in the near term.”

Moreover, the Indian equity markets are constantly receiving funding from FIIs, and Friday's record buying of Rs 3304 crore in the cash market showed their confidence in the Indian market, the analyst at Swastika Investmart said in his comment.

This week, both benchmark indices – BSE Sensex and NSE Nifty – rose more than 2.5 per cent each to post their biggest weekly gains in nine months after advancing in all five consecutive sessions.

The Nifty staged a remarkable return and finished above 18000 levels after touching a low of 17,612 at the beginning of the week.

All sectoral indices record weekly gains this week, while the volatility index falls 5 per cent, while PSU Bank and Realty gained the most amongst indices, with 7.33 and 5.1 per cent, respectively.