Mumbai: Corporate earnings of index heavy firms and expiry futures and options (F&O) contracts for October series will be keenly watched by market investors this week. The markets are likely to be volatile towards the end of the week as traders will roll over their positions in November series on Thursday.
Vinod Nair, head of research at Geojit Financial Services said, “Q2 results will gather significance in coming days with the earnings of Index heavyweights which will dictate the market’s momentum. On global front, US Federal Reserve chair speech towards the end of week will be watched closely.”
Companies that are expected to announce September quarter earnings this week are Infosys, HDFC Bank, Yes Bank, ICICI Bank, Maruti Suzuki, ITC, HCL Technologies, ONGC, HUL, Kotak Mahindra Bank and Canara Bank among others.
Reliance Securities Ltd sees September quarter dollar revenue of Infosys to rise by 3.6% while growth is pegged at 2.4% in constant currency terms on sequential basis. It thinks margins may decline on wage hikes. Key factors to watch out for in Infosys Q2 results will be maintenance of FY18 guidance, deal wins, non-executive chairman Nandan Nilekani’s progress on strengthening board processes and steps to prevent client leakages.
Motilal Oswal Securities Ltd expects HDFC Bank to continue with its steady growth and report strong return on assets (RoAs) in Q2, driven by an improvement in operating leverage and digital initiatives. “Private Banks are expected to accelerate profit growth from 11% in Q1FY18 to 18% in Q2FY18, aided to an extent by low base,” it said.
Primary markets will be buzzing in action this week with two listing on stock exchanges. Shares of Indian Energy Exchange (IEX) will make stock markets debut on Monday. The issue with a price band of Rs1,645 - Rs1,650 range was subscribed 2.28 times. The Rs1,001-crore initial public offering (IPO) was open for subscription between 9-11 October.
State-owned General Insurance Corporation of India’s (GIC Re) Rs11,370-crore IPO was open between 11 and 13 October with a price band of Rs855-912 per share. The issue which was subscribed 1.38 times will be listed on the stock exchanges on Wednesday.
Reliance Nippon Life Asset Management Ltd will launch its Rs1,542 crore IPO on 25 October. The offer with a price band of Rs247-252 per share will close on 27 October.