Derivatives expiry may cause volatility

Volatility may rule the roost in a truncated trading week with only 3 trading days. Volatility is likely to zoom due to the expiry of derivatives contracts for April 2009 series on Wednesday, 29 April 2009. With earnings season on, investors focus will be on companies about to declare their March 2009 quarterly results.

The stock market will remain shut on Thursday, 30 April 2009 as voting takes place in Mumbai for the parliamentary elections on that day. The market is also shut on Friday, 1 May 2009, on account of Maharashtra Day.

Among the frontline companies, Jaiprakash Associates, Sterlite Industries (India), Infrastructure Development Finance Company, Reliance Capital and Bharti Airtel will declare their March 2009 quarterly results in the forthcoming week.

Bank of Baroda, Indian Bank, Pantaloon Retail (India), Petronet LNG, United Spirits, Shree Renuka Sugars, Central Bank of India, Syndicate Bank, Biocon, Aditya Birla Nuvo, Vijaya Bank, Mahanagar Telephone Nigam, GVK Power & Infrastructure, Titan Industries and Canara Bank among others will also unveil their March 2009 quarterly results in the forthcoming week.

Earnings unveiled by Indian companies so far have been better than expectations. Aggregate results of 184 firms showed net profit fell 0.1% on 0.4% rise in sales in Q4 March 2009 over Q4 March 2008.

Political uncertainty may lead to volatile swings on the bourses in the next few week with polling underway for India's 15th Lok Sabha. The month-long parliamentary elections that began on 16 April 2009 will conclude on 13 May 2009 with results due on 16 May 2009. Poll estimates point to a fractured mandate.

Firm global cues and buying support from foreign institutional investors triggered a solid 3168.65 points or 38.82% surge in the BSE 30-share Sensex to 11,329.05 on 24 April 2009 from a 3-year closing low of 8,160.40 on 9 March 2009.

Foreign institutional investors (FIIs) inflow in April 2009 totaled Rs 4,548.70 crore (till 22 April 2009), cutting their calendar 2009 outflow to Rs 2,122.90 crore. Earlier, they had resorted to heavy selling of Indian stocks in the first two months of calendar 2009.

Foreign institutional investors (FIIs) inflow in April 2009 totaled Rs 4,548.70 crore (till 22 April 2009), cutting their calendar 2009 outflow to Rs 2,122.90 crore. Earlier, they had resorted to heavy selling of Indian stocks in the first two months of calendar 2009.