After recording new highs last week, more upside for the market is likely in the coming week, with fairly good inflation and industrial output data released after trading hours on Friday (May 12) set to trigger some buying early on.
However, with the market in a hitherto unknown territory and some key results round the corner, the mood may stay a bit cautious at times and this could result in some choppy rides for stocks.
The government released a new series of industrial output and wholesale inflation data, revising the base year to 2011-12 from 2004-05. After trading hours on Friday, the government released a report that showed India's consumer and wholesale price inflation rates to have slowed more-than-expected in April. The consumer price index rose 2.99%, following a 3.89% increase in March. Food inflation eased to 0.61% from 2.01%.
The wholesale price inflation eased to 3.85% in April, from 5.29% in March, another data showed.
Meanwhile, India’s industrial output rose 2.7% in March from a year earlier, another release from the government showed.
The rupee's movements against the U.S. dollar and the trend in crude oil prices will make an impact on stocks.
On the results front, State Bank of India, Punjab National Bank, Hindustan Unilever, Tata Steel, Grasim Industries, Tata Power and Bajaj Auto are scheduled to announce their quarterly results next week.
Bata India, Colgate Palmolive, Shree Cement, JSW Steel and Bank of Baroda are among the other companies that will report their fourth quarter earnings in the coming week.
On the economic front, the trade data for the month of April 2017 will be out on Monday (May 15). Economic data out of China, the U.S. and from the Euro Zone are also likely to be eyed.
