Welcome To Q4FY17 Earnings Season

As earning season started in last couple of weeks ago, the markets traded in edgy manner. Indian capital markets are consolidating but bulls are not ready to lose grip over the markets.

In last two weeks BSE Sensex and Nifty surged more than 0.5 per cent. Small-cap and Mid-cap hovering all-time high in last couple of weeks. Mid-cap increased 3.49 per cent and small-cap also rose 2.12 per cent.

On sectoral front, all sectoral indices remained positive except Metal, IT and Auto. Realty index remained top performer for the period with a gain of 18.33 per cent. The industry is reacting positively on Real Estate Regulatory Authority (RERA) bill to be applicable from May 1. Power index also rose 1.52 per cent.

However, Metals eroded 6.95 per cent as China mulls capacity cut. IT index remined second worst performer in past two weeks, and was down by nearly 2.62 per cent though biggies Infosys has declared disappointing Q4FY17 results and poor guidance for FY18.

On global front, European indices remained performer. DAX and CAC 40 increased 2.09 per cent and 3.16 per cent in last wo weeks. However, FTSE decreased 1.15 per cent. Dow Jones Industrial Average was up by 0.51 per cent; whereas, NASDAQ rose by 1.75 per cent, which tracks the global IT stocks’ performance. Hang Seng down by almost 0.51 per cent over the two-week period. However, Nikkei increased 0.41 per cent.

After pumping massive money by FIIs in Indian capital markets, have sold Rs 2471 crore in last couple of weeks. The Domestic Institutional Investors bought Rs 5070 crore equities in last two weeks.

Stock markets around the world rallied after the vote turned out in the first round of France’s presidential election. Emmanuel Jean-Michel Frederic Macron claimed the most votes of 23.8 per cent with winning of the first round. Macron will face National Front candidate Marine Le Pen, who finished second with 21.5 per cent of the vote, in a two-person runoff election on May 7. Macron is topping Eurosceptic candidates who could bring about a so-called Frexit.

Another major development from Indian IT front as US administration was wrong on visa issuance number for Indian IT companies. The tightening of visas in US has triggered multiple visa woes for India. Singapore, Australia and New Zealand too have tightened their work visa policies. BREXT only adds to the growing uncertainty for the sector.

Going ahead, Indian capital markets will follow domestic cues first as results season has just started. The market will experience stocks specific action as Q4FY17 result season is going on. IMD to give monsoon forecast in the first week of May that will trigger market. In earlier forecast have shown that there will be normal monsoon due to El Nino type of situation.