Key stock indices are likely to trade in a range next week, with action expected to remain stock-specific as companies' Jul-Sep earnings pick up pace. The bias is seen weak, though, following the 0.6% fall in indices yesterday. A disappointing Jul-Sep result, and weak 2012-13 (Apr-Mar) earnings per American Depositary Share guidance from Infosys yesterday offset gains seen on account of a better-than-expected 2.7% growth in India's August industrial production. On Monday, investor attention will be trained on September inflation data. India's annual inflation rate based on Wholesale Price Index is likely to rise to 7.68% in September, mainly on account of the hike in the price of diesel.
Among key companies reporting their results next week, Reliance Industries will be keenly eyed. Its result is due on Monday. Axis Bank, too, reports its Jul-Sep figures on Monday. Its net profit is likely to grow over 20% year-on-year to 11.19 bln rupees, despite expectations of negative surprises on the asset quality front and likely rise in restructured assets. MindTree, HCL Technologies, ACC, Ambuja Cements, Dish TV India, Praj Industries, ITC, Mastek, NIIT, Petronet LNG, Tata Consultancy Services, and Zee Entertainment Enterprises will also detail their Jul-Sep earnings next week. Pressure may persist on stocks of Infosys after it upset the Street yesterday with its numbers.We will keenly watch the interplay of volume and margins. Considering the volatile environment and the fact that H2 (Oct-Mar) is seasonally weaker, meeting this (2012-13 dollar revenue guidance of 5% year-on- year growth) will be good enough for the stock to perform, in our view.
