Brexit vote, earnings to guide markets ahead

Mumbai: The Indian markets may react to British Parliament’s vote to delay a decision on Boris Johnson’s new Brexit deal next week.

Besides, the way ahead will depend on the portfolio investments, which have been strong during the last 5 sessions.

On Thursday, the Sensex crossed the 39k mark with a 453 point gain after news of a Brexit deal between the UK and the EU. Tata Motors jumped 9.82 per cent on the BSE.

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“The Indian markets had rallied late last week on hopes of an early Brexit resolution. The latest development can reverse that optimism to some extent. However, doubts prevail about how smoothly the whole process will get completed,” said Deepak Jasani of HDFC Securities.

“The negative impact of this development could be limited. But companies that were supposed to benefit the most from an early Brexit resolution and which had rallied sharply on Friday may see a larger negative impact,” Jasani added.

Besides, the investors will await corporate results from Kotak Mahindra Bank, Bajaj Auto, HCL Technologies, Hero MotoCorp, Larsen & Toubro, ITC, Maruti Suzuki and State Bank of India.

Buying was seen in all the sessions of this week. Nifty index ended with gains on all the five trading sessions of the week. The Nifty ended with gains of 3.16 per cent week on week.

The market breadth was positive in two out of the five trading sessions of the week. The top sectoral gainers for the week were the auto, PSU, realty, metal and oil & gas indices and there were no losers.

The stock markets will remain closed on Monday on account of polling for the Maharashtra Assembly election .

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