The week will see a lot of key economic data released both on the domestic and international front. The spotlight will be on India’s CPI data that is expected later on during the week.
Apart from this, key trade and industrial data is expected from the US, Japan and Europe. Coming to primary market action, the dry spell continues for the second week for mainboard IPOs. Despite this, the SME space sees some action with three IPOs open for the week. Before we head straight into the calendar, here’s a recap:
Markets This Week
The benchmark equity indices closed higher for third straight session on Friday, after the Reserve Bank of India Monetary Policy Committee slashed the key lending rate by 50 basis points to bring it to 5.5%.
The NSE Nifty 50 ended 252 points, or 1.02% higher at 25,003, while the BSE Sensex closed 746.95 points, or 0.92% up at 82,188.99. During the day, the Nifty rose 1.13% to trade at 25,092.50 and the Sensex advanced 1.05% to 82,299.89.
The market saw a positive trend this week, with Nifty gaining over 1%, driven by Eternal Ltd. and Shriram Finance Ltd. Sensex also rose nearly 1%, snapping a two-week losing streak.
Broader market indices outperformed the benchmark indices, with Nifty Midcap 150 and Smallcap 250 each gaining more than 2.5%.
Domestic Cues: CPI And Trade Data
On the domestic front, key economic data is expected by the end of the week.
On Thursday, India’s Consumer Price Index or CPI is set to be announced. This index measures the change in the prices of goods and services from the perspective of the consumer. The central bank pays very close attention to this figure in its role of maintaining price stability.
On Friday, the export figure is set to be announced. This data provides the total US dollar amount of merchandise exports on a free on-board basis. The import number measures any good or service brought into India from another country.
The trade balance is also set to be announced on the same day. This data measures the difference in value between imported and exported goods and services over the reported period.
A positive number indicates a trade surplus while a negative number shows a case of trade deficit.
Global Cues
There are multiple countries that are set to put out key economic data.
On Wednesday, US Core CPI and Retail Inflation data for the month of May is set to be released. Core CPI measures the changes in the price of goods and services, excluding food and energy. While the Consumer Price Index or the CPI measures the change in the prices of goods and services contained in a basket of consumer items.
On Friday, Japan and Europe are set to release the industrial production data for the month of April. Industrial Production gauges the change in the total inflation-adjusted value of output manufacturers, quarries, and utilities produced. Trade data from Europe is also set to come in on Friday.
Corporate Actions
Focusing on the flurry of corporate action set to unfold this week, a notable move is Vesuvius India’s stock split from Rs 10 to Re 1 on June 10.
Names like Adani Total Gas, Ambuja Cements, Tata Elxsi, ICICI Prudential Life Insurance Company, BCPL Railway Infrastructure, Tata Chemicals, Piramal Enterprises, Power Finance Corporation, Asian Paints, Tata Investment Corporation, Canara Bank, Trent, Adani Ports and ACC are set to pay out their final dividend.
Other corporate actions for this week include a right issue of equity shares from 7NR Retail and a stock split from Murae Organisor. Here’s a full look at all the corporate actions lined up for the week.
Primary Market Action
As the dry spell in the mainboard initial-public-offering space continues for the second week of June, the SME segment is set to see a flurry of activity with three new IPOs opening for subscription.
Sacheerome’s book-built issue aims to raise Rs 61.62 crore, entirely through a fresh issue of 60.41 lakh shares. The subscription window for the IPO is from June 9 to June 11. Allotment is expected by June 12, with a tentative listing on June 16. The price band is set at Rs 96 to Rs 102 per share.
Jainik Power and Cables IPO opens on June 10 and closes on June 12, this IPO’s allotment is expected to be finalised by June 13. Jainik Power and Cables IPO is slated for listing on June 17. The issue price is set at Rs 100 to Rs 110 per share.
Monolithisch India IPO is the largest of the three, Monolithisch India’s book-built IPO aims to raise Rs 82.02 crore through a fresh issue of 57.36 lakh shares. The subscription period runs from June 12 to June 16. Allotment is expected on June 17, with a tentative listing on June 19. The price band for this IPO is set at Rs 135 to Rs 143 per share.
. Read more on Markets by NDTV Profit.