Holiday-Shortened Week: Geopolitics, Qtly results to set market voice

Geopolitical tensions between India and Pakistan, quarterly earnings, and key macroeconomic data likely to drive investor sentiment in the holiday-shortened trading week ahead, analysts stated. Trading trends of foreign investors and global updates on tariffs are also expected to guide market movements.
Stock exchanges will remain closed on Thursday, May 1, for 'Maharashtra Day,' leading to a truncated trading week. Analysts note that heightened tensions following the terror attack at Pahalgam in Jammu and Kashmir, which claimed 26 lives, have introduced additional volatility into the markets.
"The geopolitical developments between India and Pakistan could add volatility to the Indian market over the next few days. Meanwhile, stock and sector-specific action would continue on the back of ongoing Q4 earnings announcements," noted Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd.
Last week, the BSE Sensex rose 659.33 points or 0.83 percent, and the NSE Nifty climbed 187.7 points or 0.78 percent, despite witnessing profit-taking during the final two sessions. On Friday, however, the markets ended sharply lower, with the Sensex dropping 588.90 points to 79,212.53 and the Nifty declining 207.35 points to 24,039.35, reflecting investor caution amid geopolitical tensions.
In the upcoming week, corporate earnings will be a significant focus, with major companies such as BPCL, IOC, Bajaj Finance, TVS Motor, and UltraTech Cement scheduled to announce their quarterly results. Reliance Industries Ltd reported a 2.4 percent rise in its March quarter net profit to Rs19,407 crore, supported by improved telecom margins and retail operations, despite challenges in its oil and petrochemicals business.
Ajit Mishra, SVP–Research, Religare Broking Ltd, reportedly quoted as saying, "Globally, updates related to tariffs and trade will also be watched closely. Domestically, apart from earnings, macroeconomic indicators like the HSBC Manufacturing PMI and Index of Industrial Production (IIP) data will be key." Additionally, the start of May will bring monthly auto sales numbers into focus, offering insights into demand trends and sectoral performance.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted an important trend: "There is a distinct reversal in FII (Foreign Institutional Investors) strategy in India. Over the last eight sessions, FIIs have been sustained buyers in Indian equities, a shift that comes despite heightened tensions following the Pahalgam terror attacks." 
The week from April 28 to May 2 is also packed with critical global data releases, which could influence international sentiment and market positioning.Overall, analysts suggest that while optimism from corporate earnings and macro stability could support markets, caution will prevail due to geopolitical risks and global trade uncertainties.

(Business Correspondent)