Results and geopolitical issues will dictate market moves…

The benchmark indices – The Sensex and the Nifty – were on a bearish note last week.  Weak macro-economic data, crude oil and gold prices and weak global markets contributed more pressure to stock prices, which was already getting a feeling of over valuations. To a certain extent, it was the stock of PSU banks, financial services companies and short covering that helped the markets with some neat resistance. The indices closed the week at 29461 and 9151 respectively declining 245 and 47 points.

Going ahead, the key driver of markets from hereon would be the quarterly results. Infosys has kicked off earnings season with disappointing results. The issue that Indian markets will now face is that the valuations are already high and the quarterly results from companies will have to match with the valuations or else the markets will correct itself accordingly. The results season is on in full swing as heavy weights like HDFC , yes bank , Hindustan Zinc and midtree  are due to publish quarterly results this week. Internationally,   key developments in the Korean area will be looked up to with serious concerns and the developments will be affected in Indian stock markets too.

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