Indices are seen in a narrow band next week, with quarterly earnings of companies likely to drive individual stocks. Investors will also eye inflation data for July, data for which will be released on Tuesday. Bank of America Merrill Lynch sees India's inflation rate, based on the Wholesale Price Index at 7.1% in July against 7.25% in June.
Markets see support for the National Stock Exchange's 50-share Nifty in the 5250-5280 band and resistance in the 5350-5380 range. Yesterday, the Nifty ended at 5320.40, down 2.55 points, and the BSE's 30-stock Sensex closed at 17557.74, down 3.13 points. Stocks of State Bank of India are seen extending losses expect sharp earnings downgrades for the bank following the dismal Apr-Jun earnings reported on yesterday.
Some of the companies scheduled to report earnings over the weekend and early next week are Oil and Natural Gas Corp, Reliance Communications, Reliance Capital, Coal India, Tata Steel, NMDC, ABG Shipyard, Essar Oil, Hindalco Industries, Housing Development & Infrastructure, Mercator, National Aluminium Co, Reliance Infrastructure, and Unitech.
ONGC, which will report earnings on Saturday, is seen posting a 29% year on year rise in net profit at 52.63 bln rupees, aided by high global crude oil prices and a weak rupee. Tata Steel's consolidated net profit in the June quarter is seen declining 88% on year to 6.45 bln rupees, due to subdued Europe operations, high interest cost, and low other income.
(www.rupeedesk.in)
