The BSE Sensex is expected to take cues from overseas investor flows and the rupee after a U.S. Federal Reserve taper-induced emerging market rout led the indexes to mark their lowest levels since November on Thursday.
Foreign institutional investors bought Indian shares worth a net $85.4 million in January, the smallest amount since they sold $902.5 million in August, when the rupee was hitting record lows against the dollar, exchange and regulatory data as of Thursday shows.
Domestic shares have tumbled, marking a sharp turnaround since the BSE Sensex posted a record closing high on January 23, on the back of a rout in emerging markets and the Reserve Bank of India's unexpected hike in interest rates on Tuesday.
Advance GDP forecast for the current fiscal year will be watched with the government expecting 5 per cent growth while private economists expect the numbers to come in below that.
The next week would also mark the final leg of large cap earnings.
Anil Ambani group stocks including Reliance Capital would be on watch ahead of earnings in second half of the week.
Ambuja Cements Ltd and ACC Ltd results on Thursday.
Key events/factors to watch
On Monday Lupin Ltd will report their earnings, and India mobile spectrum sale will begin. January Manufacturing PMI (0500GMT) will also be released on Monday
Tuesday will see release of Jubilant Foodworks and Bharat Forge results.
On Wedneday, Ranbaxy Laboratories Ltd and Power Grid Corporation of India will report their earnings. Service PMI will also be released in the day (0500GMT).
Reliance Infrastructure Ltd , Ambuja Cements, ACC will report their earnings on Thursday.
On Friday Tata Power, Reliance Capital, Reliance Communications earnings will be released. Also the advance GDP data for current fiscal year will be released during the day.
Copyright: Thomson Reuters 2014