Tomorrow is set to be a crucial day for our market. Some might point out that tomorrow is Saturday and the market is closed, which is true for both Saturday and Sunday. However, when the market opens on Monday, we can expect a strong reaction due to important news that will directly affect our market.
Internal Market News Impact
What’s important here is that I’m not referring to any international news. I’m talking about news from within India, which will be available soon. While global updates, like those from the US, can matter, this time it’s domestic news and data that will significantly impact Monday’s market.
Role of the Financial Sector in Market Movement
As you know, talking about our market, about Nifty 50, many times I have taught you that yes, the finance sector plays the most significant role, almost 36 to 37% contribution. As you know, the finance sector is a major driver of our market, accounting for about 36-37% of the Nifty 50. Nifty Financial Services has performed well over the past five days, especially in the last two, showing steady bullishness. Between it went down, Bank Nifty also ran back. What does it mean? The bullishness we are seeing in the finance sector is the reason the market is running. The reason behind it, you might wonder, I have already covered: it is Axis Bank.
Axis Bank and Its Market Influence
Yes, Axis Bank showed good numbers, which generated hope that the bank numbers coming out will be very strong. Since Axis Bank’s numbers came out, we have seen a very positive atmosphere in the banking industry. Therefore, talking about the Nifty Financial Services sector, the leaders are HDFC and ICICI Bank, contributing about 50% contribution. Similarly, in the case of Nifty Bank or Bank Nifty, its leaders are HDFC and ICICI Bank, with more than 50% contribution.
And these two companies will present their quarterly results tomorrow. So this is a massive event because in these two, we have seen bullishness without result. Both of these companies will announce their quarterly results tomorrow. This is a significant event, as we’ve already seen bullishness in these stocks over the past few days following Axis Bank’s results. The market expects substantial numbers from them, which explains the recent rally. However, there is a lot of trouble because the advance rally might reverse. If good results come, extra bullishness can be seen.
In addition to these two banks, several others will also announce their results tomorrow, including Federal Bank, IDBI Bank, IDFC First Bank, IndusInd Bank, Jammu & Kashmir Bank, Punjab National Bank, RBL Bank, and Yes Bank. It’s shaping up to be a big day for the banking sector.
If all goes well and bullish sentiment builds in these stocks, the market can move far ahead. If 19-20 stocks do badly, it can cause serious trouble. The focus will primarily be on these two banks, as they have the most significant market share in indices like Bank Nifty and Nifty Financial Services, and they present numbers tomorrow.
Weightage of Key Stocks and Reliance Impact
If you look at the Nifty 50, HDFC and In the Nifty 50, HDFC and ICICI together hold more than 21% of the total weight. Another key factor is Reliance Industries, which also recently announced its results and will influence the market on Monday. This highlights just how important tomorrow is for our market. Fall can be seen, which depends on performance. Reliance’s results are out, but the interesting part will be the results of HDFC and ICICI Banks tomorrow.
Past Performance and Expectations
Looking at previous quarters, HDFC posted decent performance in Q1. ICICI Bank has shown consistent good performance for the last several quarters. Even when other banks were not doing well, ICICI Bank was running alone.
The key question is whether ICICI Bank can keep up this consistent performance tomorrow. Looking at its past quarterly numbers—7600, 8300, 9000, 10000, 11000, 11300, 11500, 12200, 12400, 13900—there was only a slight dip around 13800, but overall, the trend has been steady growth and bullishness.
Conclusion
In conclusion, tomorrow is a significant day. The results announced will directly influence how the market reacts on Monday. Even though the market is closed tomorrow, it will still be an essential day for investors.
