The Month of April was disastrous for the stock market in India with the Sensex losing heavily and ending at a four month low. The Sensex closed the month of April lower by 946 points. Blue chip stocks lost across the board, including the likes of HDFC, HDFC Bank, ITC etc.
1) Corporate results from biggies
The result season so far has been poor. IT companies in particular have been bad, while banking sector was just about okay. In the month of May markets would watch for results from big names like Hindustan Unilever, ITC, State Bank of India and Larsen and Toubro. Any major disappointments could drag indices lower.
2) Inflation data
The May inflation data would be key, given that the Reserve Bank of India is likely to hold a policy meet in June. Should it continue to be benign expect an interest rate cut from the RBI.
3) US Payrolls data
The US non farm payrolls data would also be significant given the fact that the US Fed would be meeting to decide on interest rate hikes in the US in June. A solid addition to the non farm payrolls data would mean a possibility of hike in interest rates in June. This could lead to a sell-off in global markets including India.
4) Land Acquisition Bill
Looks like the Land Acquisition Bill may not go through in the current session. The current parliament session is until May 8. If we not see any action on the Bill it could sour sentiments in the markets.
5) GST Bill
The last time the GST Bill was presented in the Lok Sabha, the AIADMK, the BJD and the Congress staged a walk out. This Bill has been lingering for sometime now. If this also does not see progress it could affect sentiments.