Mumbai: Major events lined up this week that are likely to decide the course of markets ahead are corporate earnings, macro data and US Federal Reserve meeting.
So far Q2 earnings indicate a slight jump in revenue amid weak demand. As per data compiled by database provider Capitaline, net sales of 172 BSE-listed companies, excluding banks, financials, oil and gas firms, have seen an yearly jump of 8.55% in July-September from a year-on-year (y-o-y) growth of 5.84% in the June quarter. Net profit after adjustment for one-time items of these same set of companies has increased to 6.09% y-o-y in the second quarter of this fiscal year from 4.43% y-o-y in April-June period of FY18.
Companies that are expected to announce their July-September quarter earnings this week are HDFC, Punjab National Bank, Lupin, Dr Reddy’s Laboratories, Tech Mahindra, TVS Motor, Glenmark and Hindalco, among others.
“The Nifty is in uncharted territory and seems to break immediate resistances. The broader range of the markets are presently at 10200-10400. This particular range may expand in the coming week since a lot of results will be coming out,” said Mustafa Nadeem, chief executive officer, Epic Research.
Infosys will be in focus this week ahead of its buyback plan. The software services firm had fixed 1 November as the record date for its up to Rs13,000 crore share buyback programme.
Auto stocks will also be watched as they release their October sales data on 1 November. According to the Society of Indian Automobile Manufacturers (Siam), passenger vehicle sales in India had grown by 11.32% in September.
On the macro front, the Index of Industrial Production (IIP) data for September, manufacturing and services PMI data for October will be released this week. Factory output in August had jumped to a nine-month high at 4.3%.
In the primary markets, three initial public offerings (IPO) will open for subscription. Mahindra Logistics Ltd’s Rs829.36-crore IPO will open on 31 October. The logistics arm of automobile maker Mahindra and Mahindra has set a price range of Rs425-429 apiece for the share sale that will close on 2 November.
State-owned general insurer New India Assurance Co. Ltd will open its Rs9,600 crore IPO on 1 November with a price band of Rs770-800 apiece.
Footwear retailer Khadim India’s IPO will open for subscription from 2-6 November with a price band of Rs745-750 per share. It expects to raise Rs543 crore through the share sale.
In the global markets, the Federal Open Market Committee (FOMC) meeting is scheduled this week. The markets are keenly watching President Donald Trump’s nominee for the US Fed chair. Current Fed chair Janet Yellen’s first term ends in February. According to Bloomberg, Trump is leaning toward appointing Fed governor Jerome Powell for the post of Fed chairman.