Global markets, Q4 results to dictate trend in BSE

Mumbai, May 13: After wrapping the week with marginal gains, the market may edge higher the following week as Mayawati's Bahujan Samaj Party (BSP) emerges as the single largest party in the Uttar Pradesh (UP) assembly, contrary to fears of a hung assembly.

Experts pointed out that now the Left may go softer on the UPA Government at the centre and consequently, we may see the Centre adopting less populist measures in the future.

It is worth mentioning here that domestic bourses had even shrugged off the impact of weak global equities on Friday, as the trend of UP polls filtered in during trading hours.

Besides, official data showing moderating inflation and strong industrial output in March this year aided recovery last week, analysts explained.

Market analysts predicted that the market will take direction the following week from trends in global equities and some prominent fourth quarterly (Q4) March 2007 results.

Suzlon Energy and LIC Housing Finance unveil their Q4 results on Monday.

Bajaj Auto and Tata Steel report Q4 results on Thursday. The board of Bajaj Auto will also consider proposal to split the company into two along with their results.

Tata Motors and Dr Reddy's Laboratories unveil Q4 results on Friday.

Some of the other Q4 results scheduled next week are Welspun-Gujarat Stahl Rohren, Shree Cement, Sobha Developers and Voltas on Monday, Sun Pharma, Havell's India and JK Lakshmi Cement on Tuesday, ICI (India), Balaji Telefilms, J B Chemicals and Pharmaceuticals on Wednesday and Federal Bank on Friday.

US stocks underwent correction on Thursday and Asian stocks followed suit on Friday, as disappointing US retail sales and a widening US trade deficit renewed worries about the economic outlook for the world's biggest economy.

In recent days, a spate of merger and acquisition activity as well as increasingly eye-popping take-over bids have helped propel many global indices to record highs. However, the sharp and swift surge has raised concerns of a steep correction, analyst opined.

India's long-term growth prospects remain strong. The long-term growth drivers are a favourable demography (large share of young population), robust domestic consumption and acceleration in infrastructure creation, market pundits explained.

UNI