It was a truncated week for the markets, with the markets seeing a good amount of losses on Muhurat trading day.
To compound the problems, the Minutes of the MPC, revealed worries over inflation hinting that there maybe no further drop in interest rates. In fact, one member of the MPC went as far as suggesting that inflation was a concern and one could consider raising interest rates, if inflation edged even higher.
Analysts are now worried that other lenders like ICICI Bank, Bank of Baroda and State Bank of India may also report a poor set of numbers, following Axis Bank.
Quarterly results are not going to be any great going forward, however, they are likely to be the key triggers for individual stocks. Larger companies like Infosys, Ambuja Cements, Asian Paints and several other smaller companies are likely to declare their results next week. Eagerly awaited would be some of the big names from the banking space in the next few weeks.
Most analysts are suggesting that the markets maybe overvalued a this juncture and one may need to look at select pockets and beaten down names from the IT, pharma and now the banking space. One needs to buy with caution and at the right price.