Markets week ahead: Stocks to focus on fund flows

Technical indicators point towards some correction in Indian equity markets next week as it seems to have become overbought after a 3.5 per cent rally in the Sensex in April, according to traders.

Focus will now shift to fund flows after the accommodative stance by global central banks. The RBI cut the repo rate by 0.25 per cent as widely expected, but said there was limited room for further easing.

India's factory output data for March and last fiscal year will be watched on May 10.

Key events to watch

The week begins with government data on the services sector during March.

On Tuesday, quarterly earnings of drug-major GlaxoSmithKline are expected to be release. The results will be followed by earnings reports from two other players in the sector - Ranbaxy Laboratories Ltd and Lupin Ltd - on Wednesday.

Results of Asian Paints for the March quarter are due on Thursday.

The week will end with factory output data for the month of March, followed by quarterly earnings of Anil Ambani-led Reliance Communications Ltd.

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