Corporate earnings, rupee to dictate stock market trend
Next set of quarterly earning numbers, foreign institutional investors investment trend, rupee movement and global cues will dictate trend in the stock market in this holiday-shortened week, say experts.business Updated: Aug 04, 2013 14:04 IST
Next set of quarterly earning numbers, foreign institutional investors investment trend, rupee movement and global cues will dictate trend in the stock market in this holiday-shortened week, say experts.
Stock market would remain closed on Friday for Id.
The week would see blue-chip earnings from Tata Power, Ranbaxy Laboratories, Tata Motors and Sun Pharmaceuticals Industries, among others.
Stock markets would on Monday also react to the US jobs data. The US economy is recovering from the worst downturn, as the latest figures indicated that the unemployment rate has dropped to 7.4%, the lowest level since December, 2008.
The latest report from the Bureau of Labour Statistics (BLS) indicates that the unemployment rate declined from 7.6% to 7.4% in July, reaching its lowest level since December, 2008.
"Global cues and quarterly results shall be closely watched for further market direction. In the coming week, 5,750 shall be crucial deciding level for Nifty in near term, and index is likely to witness further buying above this level," said Rakesh Goyal, senior vice-president, Bonanza Portfolio.
Meanwhile, the rupee continues to plunge to record lows as the currency fell to an all-time closing low of 61.10 against the dollar on Friday despite slew of steps taken by the government and the central bank in the past few weeks to support the battered currency.
In another attempt to support the rupee, the Reserve Bank last week made it mandatory for foreign institutional investors to obtain the consent of holders of participatory notes and derivative instruments before hedging. Earlier, the central bank tightened liquidity for banks and took steps to curb speculative activity in forex markets, among others.
The monsoon session of the Parliament begins on Monday, with important legislation such as a food security bill pending. The session would end on August 30, 2013.
The BSE benchmark Sensex lost 584.17 points, or 2.95%, last week to end at 19,164.02.