Benchmark share indices are expected to move within a narrow range next week as investor’s eye key economic data and companies' earnings reports for Jul-Sep. Data on Consumer Price Index inflation for September will be released on Monday. We see it at 7.2% against 6.75% a month ago.
IndusInd Bank and Reliance Industries will detail their financial results for Jul-Sep on Monday.
We expect IndusInd Bank to post a net profit of 4.17 bln rupees, up 26.23% on-year and see net sales at 8.27 bln rupees, up 3.3% on-year. Reliance Industries' net profit is seen at 53.75 bln rupees, unchanged from a year ago and net sales at 944.74 bln rupees, down 8.95% from a year ago.
Other Nifty companies which will detail their earnings next week are Bajaj Auto, HeroMotoCorp, Tata Consultancy Services, Axis Bank, HCL Technologies and Zee Entertainment Enterprises.
Investors will also keep a close eye on global developments. Any further fall in prices of crude oil may fuel a fall in shares of upstream oil companies. Cairn India is expected to be hit the most if crude prices continue to slip. The sentiment in the US, Asian and European markets will have a bearing on Indian equities as concerns surrounding the health of the global economy continue
Bank shares are expected to recover if data on industrial output and inflation turn out to be positive. Shares of information technology and pharmaceutical companies are expected to rise as well. Shares of fast moving consumer goods companies may continue to fall next week.