The results are expected to be negative compared to the previous quarter in the US and flat compared to the previous quarter in India. Experts are also anticipating a bubble formation if the small caps continue to outperform the large caps.
After a very good week in the capital markets, markets are expected stabilize and become more positive as the markets start discounting the corporate results which are due to be out in the coming 2 weeks. The first Nifty result that is expected is that of the Indusind Bank which is expected on the 16th of April. In the US, the major results are expected from Tuesday to Friday; about 30% of the Dow companies’ results are expected to be out then.
Now how should the markets react? There are 2 schools of thought. The results are expected to be negative compared to the previous quarter in the US and flat compared to the previous quarter in India. But there is a low base of expectations and market experts feel that the markets will easily outperform these low expectations. There has been enough pumping of liquidity by the major Central Banks across the world, namely the UK, ECB and Japan. China has also joined the bandwagon to inject extra liquidity into the system.
What is worrying is the outperformance of small caps worldwide in comparison to the large caps. It has been observed over time that whenever the small caps start to outperform the large caps in large proportions, sooner or later, there is a bubble formation. The PE multiple of India Nifty basket stocks are around 23.5 to 24. The PE multiples during the 2008 bull run was around 28.
So markets are a little overvalued compared to the historical PE multiples which were in the range of 18 to 20. This means that we are still not in the bubble phase. But if earnings fail to catch up in this quarter or the next and if we have poor monsoons this year, then the markets will fail to remain on this ground.
Reliance Industries Ltd, a heavyweight, is scheduled to announce its earnings on the 17th of April and others are expected to announce the same in the coming months. Volatility starts in the markets after the 15th of April. Till that point, the markets can be expected to remain in a sideward moving range.
Corporate Results Calender
Symbol
Company
Date
SEINV
S.E. Investments Limited
11-Apr-15
CIMMCO
Cimmco Limited
13-Apr-15
TWL
Titagarh Wagons Limited
13-Apr-15
DCBBANK
DCB BANK LIMITED
14-Apr-15
REIAGROLTD
Rei Agro Limited
14-Apr-15
ACC
ACC Limited
14-Apr-15
8KMILES
8K Miles Software Services Limited
14-Apr-15
INFOMEDIA
INFOMEDIA PRESS LIMITED
15-Apr-15
TV18BRDCST
TV18 Broadcast Limited
15-Apr-15
NETWORK18
Network18 Media & Investments Limited
15-Apr-15
RIIL
Reliance Industrial Infrastructure Limited
15-Apr-15
GRUH
Gruh Finance Limited
16-Apr-15
TCS
Tata Consultancy Services Limited
16-Apr-15
MINDTREE LTD
MindTree Limited
16-Apr-15
INDUSIND BANK LTD
IndusInd Bank Limited
16-Apr-15
CRISIL
CRISIL Limited
17-Apr-15
VSTIND
VST Industries Limited
17-Apr-15
R. S. SOFTWARE (INDIA) LTD
R. S. Software (India) Limited
17-Apr-15
RELIANCE
Reliance Industries Limited
17-Apr-15
DELTACORP
Delta Corp Limited
17-Apr-15
ATFL
Agro Tech Foods Limited
17-Apr-15
CIMMCO
Cimmco Limited
18-Apr-15
TWL
Titagarh Wagons Limited
18-Apr-15
LICHSGFIN
LIC Housing Finance Limited
18-Apr-15
HINDZINC
Hindustan Zinc Limited
20-Apr-15
TATASPONGE
Tata Sponge Iron Limited
20-Apr-15
DICIND
DIC India Limited
21-Apr-15
WIPRO
Wipro Limited
21-Apr-15
WENDT
Wendt (India) Limited
21-Apr-15
VSTIND
VST Industries Limited
21-Apr-15
PERSISTENT
Persistent Systems Limited
21-Apr-15
HCLTECH
HCL Technologies Limited
21-Apr-15
21STCENMGM
21st Century Management Services Limited
21-Apr-15
ASAL
Automotive Stampings and Assemblies Limited
22-Apr-15
EVERESTIND
Everest Industries Limited
22-Apr-15
CYIENT
Cyient Limited
23-Apr-15
SKFINDIA
SKF India Limited
23-Apr-15
MRF
MRF Limited
23-Apr-15
M&MFIN
Mahindra & Mahindra Financial Services Limited
23-Apr-15
IPAPPM
International Paper APPM Limited
23-Apr-15
HDFCBANK
HDFC Bank Limited
23-Apr-15
CERA
Cera Sanitaryware Limited
23-Apr-15
CAIRN
Cairn India Limited
23-Apr-15
CHOLAFIN
Cholamandalam Investment and Finance Company Limited
24-Apr-15
SSWL
Steel Strips Wheels Limited
24-Apr-15
SIEMENS
Siemens Limited
24-Apr-15
SUPREMEIND
Supreme Industries Limited
24-Apr-15
INFY
Infosys Limited
24-Apr-15
APLLTD
Alembic Pharmaceuticals Limited
27-Apr-15
ICICIBANK
ICICI Bank Limited
27-Apr-15
GRANULES
Granules India Limited
27-Apr-15
GODREJCP
Godrej Consumer Products Limited
28-Apr-15
TATAELXSI
Tata Elxsi Limited
28-Apr-15
NAVINFLUOR
Navin Fluorine International Limited
28-Apr-15
BIOCON
Biocon Limited
29-Apr-15
SHREECEM
Shree Cements Limited
29-Apr-15
HDFC
Housing Development Finance Corporation Limited
29-Apr-15
CHAMBLFERT
Chambal Fertilizers & Chemicals Limited
30-Apr-15
SHOPERSTOP
Shoppers Stop Limited
30-Apr-15
OILCOUNTUB
Oil Country Tubular Limited
30-Apr-15
NOCIL
NOCIL Limited
30-Apr-15
MAHLIFE
Mahindra Lifespace Developers Limited
30-Apr-15
IDFC
IDFC Limited
30-Apr-15
AXISBANK
Axis Bank Limited
30-Apr-15
ATUL
Atul Limited
30-Apr-15
COROMANDEL
Coromandel International Limited
30-Apr-15
CARBORUNIV
Carborundum Universal Limited
1-May-15
MHRIL
Mahindra Holidays & Resorts India Limited
1-May-15
VGUARD
V-Guard Industries Limited
4-May-15
DABUR
Dabur India Limited
5-May-15
GICHSGFIN
GIC Housing Finance Limited
6-May-15
VESUVIUS
Vesuvius India Limited
7-May-15
GILLETTE
Gillette India Limited
8-May-15
PGHH
Procter & Gamble Hygiene and Health Care Limited
8-May-15
KANSAINER
Kansai Nerolac Paints Limited
8-May-15
MAHINDCIE
Mahindra CIE Automotive Limited
11-May-15
DRREDDY
Dr. Reddy’s Laboratories Limited
12-May-15
CARERATING
Credit Analysis And Research Limited
12-May-15
DPL
Dhunseri Petrochem Limited
14-May-15
ALKYLAMINE
Alkyl Amines Chemicals Limited
15-May-15
ZUARIGLOB
ZUARI GLOBAL LIMITED
15-May-15
ZUARI
Zuari Agro Chemicals Limited
15-May-15
TORNTPHARM
Torrent Pharmaceuticals Limited
15-May-15
IFGLREFRAC
IFGL Refractories Limited
16-May-15
DOLPHINOFF
Dolphin Offshore Enterprises (India) Limited
19-May-15
BAJAJFINSV
Bajaj Finserv Limited
20-May-15
BAJFINANCE
Bajaj Finance Limited
20-May-15
BAJAJ-AUTO
Bajaj Auto Limited
21-May-15
BAJAJHLDNG
Bajaj Holdings & Investment Limited
21-May-15
MAARSOFTW
Maars Software International Limited
25-May-15
ESABINDIA
Esab India Limited
26-May-15
GODREJIND
Godrej Industries Limited
27-May-15
AMARAJABAT
Amara Raja Batteries Limited
28-May-15
M&M
Mahindra & Mahindra Limited
29-May-15
RELIGARE
Religare Enterprises Limited
29-May-15
MOTOGENFIN
The Motor & General Finance Limited
29-May-15
NAUKRI
Info Edge (India) Limited
29-May-15
SUDARSCHEM
Sudarshan Chemical Industries Limited
29-May-15
ZODJRDMKJ
Zodiac JRD- MKJ Limited
29-May-15