The earning season kicked off this week, with the results of HDFC, Infosys, TCS and HDFC Bank. While Infosys disappointed with its revenue guidance and margins, TCS, HDFC Bank and HDFC all reported a good set of numbers.
As we head into next week, the results that trickle in would be instrumental in determining the course of the markets. In fact, if some of the majors companies report a disappointing set of numbers it could have an effect on the market.
Inflation is set to be declared on Monday. Inflation data is always crucial for the markets, as they decide which way interest rates would move. If inflation comes in higher than expected, we could see some mild reaction in stocks, as the expectations from the RBI to cut rates in its Monetary policy Review of July 31, diminishes. In fact, already there are very little hopes that the RBI would act on July 31, 2012.
Analysts broadly expect inflation for June to be around 7.6%. A figure higher than that could see a mild reaction in stocks.
Meanwhile, Europe and the US markets closed strongly on Friday, bolstered by the GDP figures declared by China. The Dow Jones surged by 1.62% , while the Nasdaq gained 1.48%. This could ensure a strong opening for the Indian markets on Monday.
Largely, the markets are expected to be rangebound looking for cues to break away from the tight range.