Benchmark indices managed to snap their six-session losing streak, the longest since early May on Friday, even as analysts said subdued corporate earnings, foreign fund outflows and weak global cues continue to weigh on investor sentiment.
“Disappointing corporate earnings are adding to the weakness in the benchmarks. Weak monsoon in major parts of India is also weakening the sentiments,” said Romesh Tiwari, Head of Research, CapitalAim.
According to Ajit Mishra, Vice President, Research, Religare Broking Ltd, “In absence of any major trigger, we advise keeping close watch on earnings and global markets for further cues.”
DLF, Dr Reddy’s Laboratories, Axis Bank and Bank of India are among the other major corporates set to announce their results this week. Besides, infrastructure output and PMI data for the manufacturing sector will also influence trading sentiment this week, analysts added.
At the global front, all eyes will be on the US Fed’s interest rate decision. “A decisive up-move will require liquidity from FIIs which is now in doldrums while any signs of stability and development in economic activity can change the situation,” said Vinod Nair, Head of Research, Geojit Financial Services.
During the last week, the Sensex lost 454.22 points or 1.18 per cent to close at 37,882.79 on Friday.