With Sensex crossing the 15,000 mark, the stock market may see a volatile and sector-specific rally in the coming week on cues from the quarterly earnings, analysts say. “A slight correction might be there but overall movement of the market next week will depend on earnings,” said Umesh Karne, research analyst at Emkay Shares and Stock Broking.
Infosys and i-Gate will announce first quarter results of 2007-08 on July 11. Analysts believe markets have already factored in the concern that the sharp rise in rupee value against the US dollar and other major foreign currencies would eat into the profits of export-focused Indian IT firms. “With the commencement of the earnings session this week market sentiments are likely to be driven by sector specific cues as a positive undercurrent is already in the offing,” an analyst with a domestic brokerage firm said.
Rising rupee
The rupee has risen more than 10 per cent against the US dollar since January — 6.4 per cent in April-June alone — and is currently at a nine-year high.
The  Sensex rally to the 15 k-mark was led by IT stocks.Brokerage firm Karvy  expects Infosys to report a revenue growth of 2.1 pc and a sequential decline of 14 pc in net profit. Rupee’s average exchange rate of Rs 41.2 against the US$ is much above the Rs 42.30-43.10 assumed by Infosys and Satyam in their guidance for the Q1 and the entire fiscal year.