Markets ended the day week lower than the previous week as selling was seen in select banking and tech stocks. Logjam in parliament and a poor set of quarterly numbers adversely affected sentiments. For the week the Sensex dropped 1.2 per cent.
Wipro on the other hand was lower after its results lagged estimates. Some companies like HDFC Bank did not react to its results as it was on expected lines.
Next week apart from results markets might react to developments in parliament. The first week was a complete washout and if next week follows the same pattern it may not be good news for the markets.
It looks difficult for the GST Bill to pass in the monsoon session and this may affect sentiments. The reforms process now seems to be on the back burner with the Land Acquisition Bill also in a limbo.
Results and the monsoon progress would be the other triggers for the market. Already the MET department has said that the monsoon for the month of July is facing a shortfall. This may not be good news on the interest rate front as the RBI would prefer to hold rates steady. The central bank is expected to be meet on Aug 3 for its monetary policy.
All in all the trend looks lower, given the fact that the parliament session maybe a complete washout this time round.
Expect a volatile session in any case.