Trump effect, Q3 earnings to drive markets

Investors will keenly watch the developments in the US as policies under President Donald Trump are likely to drive domestic market sentiments in this truncated trading week along with corporate earnings and budget expectations, feel experts. Domestic bourses would remain closed on Thursday for Republic Day.

“One needs to closely watch the detailed fleshing out of Trump’s policies over the next few days to gauge the exact impact,” said Prabhudas Lilladher CEO and Chief Portfolio Manager (PMS) Ajay Bodke.

Trump assumed office as the US President and reiterated his pledge to restore jobs to Americans and protect borders, a veiled reference to pursuing a tough immigration policy. He also said that protection will lead to great prosperity and strength.

“This week, the focus would be on Trump’s policies, corporate earnings and upcoming budget,” said  Kotak Securities Vice President (PCG Research) Sanjeev Zarbade. Market participants would track the new policy initiatives of the newly-elected US President.

“This week it will be imperative to watch the aftereffects of Trump’s statements in the oath ceremony, while earnings of heavyweights like HUL, HDFC, Bharti Airtel, and Ultratech will further set the tone ahead of Union Budget,” said Mustafa Nadeem, CEO, Epic Research.

Meanwhile, markets may also react to news that Sebi is planning to further tighten the regulations governing participatory notes amid persisting concerns that this route is being used for illicit fund flows.