The week ahead will see Quad leaders from Australia, India and Japan attend the summit in the US. Attendees include Prime Minister Narendra Modi, Australian Prime Minister Anthony Albanese, and Japanese Prime Minister Fumio Kishida. The summit aims to strengthen ties between the four nations, focusing on key regional and global challenges.
The week starting Sept. 23 will see two mainboard IPOs—KRN Heat Exchanger and Refrigeration Ltd. and Manba Finance Ltd. KRN's issue is priced at Rs 209–220 per share, while Manba Finance aims to raise Rs 150.8 crore.
Sentiments in global equity markets remained positive, after the US Fed delivered a 50-bp rate cut, as the FOMC drew confidence from inflation moving toward the 2% target gradually. Market reactions in the aftermath of the event suggest a reasonable confidence in a soft-landing currently, according to Shrikant Chouhan, head of equity research at Kotak Securities. "Going forward, D-street will focus on the macro trends, inflation and global situation including geo-political concerns."
The markets are gradually climbing up and this positive momentum is expected to continue next week, backed by strong FII inflows, healthy domestic macros, and receding concern about the US economy slowing down, according to the Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services Ltd.
Markets Last Week
India's benchmark equity indices logged gains for a second consecutive week and hit new highs in four out of five sessions this week. On Friday, they tracked the gains in the US as well as other Asian markets and recorded fresh closing highs again.
The NSE Nifty 50 ended 375.15 points or 1.48% higher at 25,790.95, while the S&P BSE Sensex closed 1,359.51 points or 1.63% up at 84,544.31.
Shares of ICICI Bank Ltd., HDFC Bank Ltd., Mahindra & Mahindra Ltd., Larsen & Toubro Ltd. and Reliance Industries Ltd. contributed the most to the gains in the Nifty.
The broader markets underperformed the benchmark indices, as the BSE MidCap and the SmallCap indices ended 1.16% and 1.37% higher, respectively.
In the week ended Sept.20, the Nifty added 1.7% and the Sensex jumped 1.99%. Among sectors, Nifty Realty and Nifty Bank were the top gainers, and Nifty Media and Nifty IT fell.
Domestic Cues
Modi will be visiting the US between Sept. 21 and 23, according to a press release. During the visit, Modi will participate in the fourth Quad Leaders’ Summit in Wilmington, Delaware, which is being hosted by President Joe Biden on Sept. 21.
The prime minister will address the ‘Summit of the Future’ on Sept. 23 at the United Nations General Assembly in New York. The theme will be 'Multilateral Solutions for a Better Tomorrow'. On Sept. 23, India HSBC Manufacturing PMI data will be released.
In the last week of September, the Reserve Bank of India will release Foreign Direct Investment inflow data for July, while the Ministry of Petroleum and Natural Gas will announce domestic natural gas prices for October. Both updates are expected to influence market dynamics and economic policy.
On the political front, Jammu and Kashmir is set to hold the second phase of its first local government elections since the revocation of its autonomy in 2019. The first phase of voting held on Sept. 18 saw a voter turnout of 59%.
Global Cues
Quad Leaders' Summit will be held on Sept. 21 in Wilmington, Delaware. Attendees include Prime Minister Narendra Modi, Australian Prime Minister Anthony Albanese, and Japanese Prime Minister Fumio Kishida. The summit aims to strengthen ties between the four nations, focusing on key regional and global challenges.
On Sept. 23 Singapore is going to release its CPI data. Singapore's inflation has likely slowed to 1.9% year-on-year in August from 2.4% in July. Australia CPI, Tokyo CPI are the other important data to look out for.
The Australia Monetary Policy Decision will be announced on Sept. 24. The Reserve Bank of Australia is expected to hold the cash rate target at 4.35%. The case for another hike continues to recede, as per Bloomberg data.
On Sept. 23, UK S&P Global Manufacturing PMI, S&P Global Services PMI and Eurozone HCOB Manufacturing PMI will also be released.
Primary Market Action
The week beginning Sept. 23 will see the opening of two mainboard issues along with five others in the SME space. KRN Heat Exchanger and Refrigeration Ltd., and Manba Finance Ltd., are the upcoming mainboard IPOs in India this week.
Non-banking financial company Manba Finance's IPO is scheduled to open for subscription on Sept. 23 and close on Sept. 25. The IPO is scheduled to list on the NSE and the BSE on Sept. 30. The mainboard IPO is an entirely fresh issue of 1.26 crore shares worth Rs 150.8 crore.
The NBFC's IPO price band has been fixed between Rs 114 and Rs 120 for each equity share with a face value of Rs 10 each.
KRN Heat Exchanger and Refrigeration Ltd. will open at a price band of Rs 209-220 per share. The Rajasthan-based company's maiden offering consists of a fresh issue of size of 1.55 crore equity shares with no offer-for-sale component.
Northern Arc Capital Ltd., Arkade Developers Ltd., Pelatro Ltd., Environtech Systems Ltd., and Western Carriers (India) Ltd., will be listing on Sept. 24.
Corporate Action Ahead
On the corporate front, Aarnav Fashions Ltd., Bajaj Healthcare Ltd., BMW Industries Ltd., Ceigall India Ltd., Cochin Shipyard Ltd., will be the big names that have record dates for their interim/final dividend in the coming week.
Silicon Rental Solutions Ltd., Starlineps Enterprises Ltd., Swastika Investmart Ltd., will undergo a stock split from the week starting Sept. 23.
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