THE WEEK AHEAD

Market may remain volatile ahead of near month F&O expiry Macroeconomic data, next batch of Q4 results of India Inc., timing of arrival of monsoon rains, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the near term. The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month May 2016 series to June 2016 series. The near month May 2016 derivatives contracts expire on Thursday, 26 May 2016. Investors will closely track the next batch of Q4 results of India Inc. BPCL and Tata Power Company will announce Q4 results on Monday, 23 May 2016. Cipla and Tech Mahindra will announce Q4 results on Tuesday, 24 May 2016. Bajaj Auto, GAIL (India), Tata Steel and L&T will announce Q4 results on Wednesday, 25 May 2016. Bharat Heavy Electricals (Bhel) and State Bank of India (SBI) will announce Q4 results on Friday, 27 May 2016. Coal India announces Q4 results on Saturday, 28 May 2016. Investors will closely watch the timing of arrival of monsoon rains. India's weather department, the India Meteorological Department (IMD) on 15 May 2016 said that the statistical model forecast suggests that the monsoon onset over Kerala in this year is likely to be slightly delayed. The southwest monsoon is likely to set over Kerala on 7 June 2016 with a model error of ± 4 days. The arrival of the south-west monsoon in Kerala marks the beginning of monsoon season. Earlier, IMD in its release of the long range forecast for the 2016 southwest monsoon season rainfall on 12 April 2016, said that the monsoon seasonal rainfall during the forthcoming monsoon is likely to be 106% of the Long Period Average (LPA) with a model error of ± 5%. The LPA of the seasonal rainfall over the country as a whole for the period 1951-2000 is 89 cm. A two-day meeting of G7 finance ministers and central bank governors is scheduled on 20 and 21 May 2016 in Japan. Global markets will on Monday, 23 May 2016, react to the outcome of this meeting. The G7 meeting is the meeting of the finance ministers from the group of seven nations viz. United States, Japan, Germany, France, United Kingdom, Italy and Canada. The meeting could reportedly highlight a divide among the club of rich nations over currency policy and how to rev up global growth. In US, Philadelphia Fed President Patrick Harker will speak to the Philadelphia Council for Business Economics followed by the press meet in Philadelphia on Monday, 23 May 2016. St. Louis Federal Reserve Bank President James Bullard will address a speech on the economy and monetary policy in Beijing followed by the press meet on Monday, 23 May 2016. The data on flash Purchasing Managers' Manufacturing Index (PMI) for the month of May 2016 is due on Tuesday, 24 May 2016. The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Data on new home sales for the month of April 2016, measuring the number of newly constructed homes with a committed sale during the month will also be released on Tuesday, 24 May 2016. The preliminary figures for Q1 March 2016 gross domestic product (GDP) will be released on Friday, 27 May 2016. Federal Reserve Chairwoman Janet Yellen will receive an award from the Radcliffe Institute for Advanced Study at Harvard University, and speak with Harvard Professor Gregory Mankiw on Friday, 27 May 2016.