Q2 results, macro-data to flare-up stocks’ volatility

Mumbai: The upcoming second-quarter earnings result season, along with macro-economic data points that industrial output and inflation are expected to flare-up volatility in Indian equities during the next trade week, market observers opined.
“The 2QFY20 earnings would be cautiously watched out which begins next week. Investors would evaluate management narratives as to how they intend to utilize the savings from the recently announced corporate tax rate cut,” Motilal Oswal Financial Services’ Retail Research Head Siddhartha Khemka told IANS.
“Even globally, unemployment data of US which is due next week holds the key for Fed’s next step towards a rate cut. Thus domestic and global developments would keep markets range-bound with negative bias.” According to Edelweiss Professional Investor Research’s Chief Market Strategist Sahil Kapoor: “With many pulls and push in the upcoming earnings seasons expect volatility to remain high and markets to regain a stronger footing as financial results are reported.” The Q2, 2019-20, earnings result season will kick off from next week. IT major Tata Consultancy Services (TCS) is expected to be the first blue-chip to come out with its Q2 result on October 10.
Other companies such as Infosys, IndusInd Bank, and Union Bank of India are also expected to announce their Q2 earning results in the coming week.