The upcoming week is set to see major events that may shape market sentiment, both domestically and globally. After US President Donald Trump’s unexpected announcement of 25% tariffs on India and a penalty to go along with it for purchasing oil from Russia, all eyes will be on how the latter will negotiate these new terms.
The Reserve Bank of India is set to announce the benchmark interest rate in its Monetary Policy along with the reverse repo rate for the economy on Wednesday.
The ongoing monsoon session of the parliament will also be of significance.
On the global front, key economic data releases are expected, including US releasing its initial jobless claims data and the UK’s Bank of England making its interest rate decision for the month of August, and US’s crude oil inventories data.
In the primary market, two mainboard IPOs are set to open for subscription while there are also eight SME IPOs opening, adding to the buzz of activity for investors.
Markets On The Home Turf
Indian stock markets logged their fifth consecutive week of losses on Friday amid trade uncertainties with the US and persistent foreign institutional outflows.
The NSE Nifty 50 settled 203 points or 0.82% lower at 24,565.35 and the Sensex lost 585.67 points or 0.72% to close at 80,599.91. Both the Nifty and Sensex shed 1% this week.
Of the 50 stocks on the blue-chip Nifty, 38 declined. The market capitalisation fell by nearly Rs 1.7 lakh crore.
Indian stocks had their first monthly loss since February last month. Foreign investors have pulled Rs 17,741 crore out of Indian equities in July, as per NSDL data.
Domestic Cues
India’s financial institutions will undertake many key economic decisions along with deliberations on oil and its overall trade policy in light of US President Donald Trump’s 25% tariff announcement on India, along with an additional penalty for purchase of oil from Russia.
The Nikki Services Purchasing Managers’ Index data will be released on Tuesday, with a higher than expected reading to be taken as positive i.e bullish for the rupee, while a lower than expected reading would be taken as negative or bearish for the domestic currency.
Wednesday will see an abundance of major policy announcements which include declaring the cash reserve ratio, the benchmark interest rate being determined and shared along with the reverse repo rate as well as the M3 money supply data.
The Reserve Bank of India will release foreign exchange reserve data with regards to the US dollar on Friday.
Global Cues
Global economies are going to see a packed week when it comes to policy decisions and economic data, with Monday involving the US releasing factory orders data for the month of June, and China releasing Caixin services PMI data, and Tuesday seeing the release of the United States’ Services PMI data, ISM Non-Manufacturing PMI and ISM Non-Manufacturing Employment Prices as well as July’s Services PMI data. The US will also release trade balance, imports and exports data for the month of June.
The United Kingdom will release Composite PMI, Services PMI for the month of July and the Eurozone and the USA will release S&P Global Composite PMI data for July.
Wednesday will witness the release of the US’s crude oil inventories data,10-year note auction along with Australia releasing trade balance data for the month of June; and China releasing imports and exports (year-on-year) data for July along with data for trade balance (US dollar) for July.
Thursday will see a flurry of events with the most important ones being the US releasing its initial jobless claims data and the UK’s Bank of England making its interest rate decision for the month of August. The US will also hold its 30-year bond auction on this day.
Friday is set to have a relatively light series of significant announcements with China releasing its Consumer Price Index data for July (both YoY and month-on-month) and Producer Price Index data.
Primary Market Action
This week is set to be busy for the IPO market, with several companies launching their initial public offerings. Among them, two mainboard IPOs – JSW Cement Ltd., Highway Infrastructure Ltd. are scheduled to open for subscription.
JSW Cement Ltd. will have its IPO open from Aug. 7 to Aug. 11.
Highway Infrastructure Ltd. will be open from Aug. 5 to Aug. 7.
In addition to these, eight SME companies will also enter the market: ANB Metal Cast, Sawaliya Foods Products, Bhadora Industries, Parth Electricals & Engineering, Jyoti Global Plast, Aaradhya Disposal Industries, BLT Logistics, Essex Marine.
Earnings In Focus
This week, another busy lineup of notable Indian companies across diverse sectors is slated to announce their Q1 results. In the IT sector notable firms such as Hinduja Global Solutions Ltd, NIIT Ltd, and Birlasoft Ltd. are all set to report their quarterly performance.
The financial sector will see key result announcements from prominent names such as State Bank of India, and other notable firms such as Life Insurance Corporation of India, Aditya Birla Capital Ltd, Max Financial Services Ltd and many more will also report results.
In the FMCG and consumer durables segments, Britannia Industries Ltd., Godrej Consumer Products Ltd., Marico Ltd, as well as Blue Star Ltd., Cera Sanitaryware Ltd., Crompton Greaves Consumer Electricals Ltd., Titan Company Ltd., and Trent Ltd., are among those scheduled to release their earnings.
The cement and infrastructure space will see reports from Adani Ports and Special Economic Zone Ltd., DLF Ltd., Grasim Industries Ltd., Shree Cement Ltd., and Torrent Power Ltd.
From the pharma and healthcare sector, Cipla Ltd., Divi’s Laboratories Ltd., Dr Reddy’s Laboratories Ltd., Sun Pharma Advanced Research Company Ltd, Lupin Ltd., and Apollo Hospitals Enterprise Ltd. are notable names.
Other significant companies across various sectors, such as National Aluminium Company Ltd, NBCC (India) Ltd, Bajaj Auto Ltd., Ceigall India Ltd., Garden Reach Shipbuilders & Engineers Ltd., Sula Vineyards Ltd., PVR Inox Ltd., Castrol India Ltd., IRCON International Ltd., and Hero MotoCorp Ltd., among others will also report their earnings this week.
Corporate Actions
The upcoming week is set to be active with various corporate actions, including several companies going ex-trade for dividends, bonus issues, stock splits, rights issues, and buybacks. Investors looking to benefit from these actions should pay close attention to the ex-dates to ensure their eligibility.
Here’s a full list:
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