New Delhi: Results of Assembly elections in Maharashtra and Haryana and second quarter earnings of blue- chips such as HDFC, Wipro and HDFC Bank would dictate stock market trend in a holiday-shortened week ahead, say experts.
Stock markets will remain closed on Thursday on account of Diwali Laxmi Pujan and on Friday for Diwali Balipratipada.
However, stock exchanges will conduct a special trading session on Thursday for muhurat trading on Diwali.
Market movement in near-term will depend upon the result of elections held in Maharashta and Haryana.
Results of assembly elections in these two states will be announced today.
Exit polls have predicted BJP would gain majority in recently-held Maharashtra and Haryana assembly polls.
Among major earnings this week are from companies such as HDFC Bank, Cairn India, Punjab National Bank, HDFC and Wipro.
"In this holiday shortened week, participants would be eyeing results of some big names including Cairn India, HDFC Bank, Punjab National Bank, Kotak Bank, Wipro among others," said Jayant Manglik, President-retail distribution, Religare Securities.
Investment trend by overseas investors, movement of rupee against the dollar and crude oil price will also be key for stocks.
Meanwhile, signs of anxiety over global growth and fears over spread of Ebola virus may hurt market sentiment.
"Indian markets are expected to tread cautiously amid renewed worries over the European debt crisis. Better than expected earnings could provide an upsurge while global worries could prove to be a dampener. Crude tumbling to record lows and CPI easing up are positives for India, which should help equities trade up," said Aman Chowdhury, CEO and Co-Founder, Cians Analytics.
On a weekly basis, the Sensex fell for the fourth straight week and lost 188.85 points.
"We believe, although fundamentals are somewhat lagging the prices currently, the markets are looking robust and poised for stronger rally from here provided global worries with respect to Fed's stimulus rollback do not disturb the FII mood over emerging markets," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said, "Markets will take huge cues from results of two states assembly elections in which according to exit polls BJP is strong amongst all and would form government in the states of Haryana and Maharashtra which would be taken as positive news for the reforms."
