The upcoming week is packed with market giants like Reliance Industries Ltd., Infosys Ltd., UltraTech Cement Ltd., Bajaj Auto Ltd., Wipro Ltd., and JSW Infrastructure Ltd. ready to post their first-quarter earnings, setting the tone for market sentiment.
Catch all the Reliance Industries Q1 Results live updates on NDTV Profit.
Primary market activity will be relatively quiet, with only three initial public offerings and one listing. On Monday, the commerce ministry will release the Wholesale Price Index for June, providing insight into inflation trends in the country.
Globally, all eyes will be on China as its second-quarter GDP numbers are expected on Monday. Additionally, the highly anticipated Third Plenum, where nearly 400 government bigwigs and others meet to discuss key political and economic strategies, will begin on Monday and conclude on Thursday.
"There is a mix of anxiety and excitement due to the muted Q1 FY25 earnings forecast and the expectation of a growth-oriented budget," said Vinod Nair, head of research at Geojit Financial Services Ltd.
On the other hand, guidance of a strong GDP for FY25 has evoked positive investor sentiment, according to him.
Nair also points out the optimism from recent US inflation data. "The release of softer-than-expected US inflation to a one-year low has added fresh levers of optimism." He expects information technology stocks to be in the spotlight due to strong earnings and outlook, while fast-moving consumer goods stocks may outperform, thanks to good monsoon progress and expected volume upticks.
Key economic data like China's GDP, Eurozone Consumer Price Index inflation, European Central Bank policy, and the US Fed chair's speech will be closely watched by investors, he said.
Spain and England will face off in the Euro 2024 final at Berlin's Olympia Stadium on July 15 at 12:30 a.m. IST.
Markets Last Week
India's equity gauges continued their winning streak, registering the longest stretch of weekly gains in nearly seven months. The Indian benchmark indices recovered from a two-day decline to end sharply higher for the week-ended July 12, driven by a surge in information technology stocks, after Tata Consultancy Services Ltd. surprised the market with its quarterly earnings.
The NSE Nifty 50 and the 30-stock Sensex rose 0.73% and 0.65%, respectively, during the week, marking the best stretch of gains for the benchmarks in seven months.
"Multiple tailwinds led the market to come out of its range-bound trajectory...The strong result from the IT bellwether and a drop in US inflation to a one-year low added optimism to the market," Nair said.
The increasing probability of a rate cut in September, reflected in the fall of the dollar index, also contributed to the positive sentiment. IT will remain in the limelight due to the good start to earnings and positive outlook, according to Nair. "We expect stock-specific moves to gain traction due to the ongoing earnings season and upcoming budget."
Domestic Cues
The upcoming week will see significant economic data releases and events, particularly in the context of the upcoming India Union Budget announcement on July 23.
On Monday, the commerce ministry will release the Wholesale Price Index for June. The Reserve Bank of India will conduct a switch auction for 10 bonds worth Rs 25,000 crore, with bids to be submitted between 10:30 a.m. and 11:30 a.m. IST.
Thursday and Friday will see the Indian Vegetable Oil Producers' Association organising the Vegoils Vision 2030 event in New Delhi.
On Friday, the Labour Bureau will release the CPI for farm and rural labourers for June. Also, India will announce its foreign exchange reserves data as of July 12.
On occasion of Muharram, the first month of the Islamic calendar, the bourses will be closed on Wednesday.
Global Cues
On Monday, China will release its second-quarter GDP. Additionally, Chinese President Xi Jinping will convene senior party officials for a closed-door conclave, known as the Third Plenum, which could result in economic reforms.
The Third Plenum in Beijing gathers around 400 government officials, military chiefs, provincial leaders, and academics to steer the political and economic course, Bloomberg reported. However, investors have low expectations for significant reforms that would boost market sentiment.
Recent official statements and media coverage suggest a focus on reinforcing President Xi Jinping’s long-term goals. Key policies expected to be addressed include supply chain security, urbanisation and rural reform, fiscal and tax revamp, and the role of the private sector.
On Tuesday, the US will release the Import Price Index and Retail Sales data for June. Wednesday will see Indonesia announce its rate decision.
Thursday brings Japan's trade data for June. China is expected to issue a communique at the conclusion of the Third Plenum party gathering. The European Central Bank monetary policy meeting outcome will also be announced.
Finally, on Friday, the US will release data for May's Total Net Treasury International Capital Flows and Net Foreign Security Purchases.
Q1 Earnings This Week
Among the Nifty 50 companies, Reliance Industries Ltd., Asian Paints Ltd., Bajaj Auto Ltd., LTIMindtree Ltd., UltraTech Cements Ltd., Infosys Ltd., Wipro Ltd. and JSW Steel Ltd. will be publishing their earnings for the first quarter of fiscal 2025.
On Wednesday, LTIMindtree will hold its press meet to discuss its earnings.
Other notable companies that are announcing their Q1 reports include Hatsun Agro Product Ltd., HDFC Life Insurance Co., Infosys Ltd., Persistent Systems Ltd., Tata Communications Ltd. and Tata Technologies Ltd.
Primary Market Action
Three small to medium enterprises will roll out their initial public offerings during the week.
Electric vehicle manufacturer Tunwal E-Motors Ltd. will be the first IPO opening for subscription in the upcoming week. It will open on Monday with a price of Rs 59 per share.
Kataria Industries Ltd. is launching its IPO on Tuesday. It supplies a range of products, including steel wires, anchorage system, sheathing ducts, couplers, and aluminum conductors, used in various sectors.
Macobs Technologies Ltd., a company selling specialised trimmers, hygiene products, and self-care items, will open its IPO on Tuesday.
Sahaj Solar Ltd. will debut on both the NSE and BSE on Friday.
Corporate Action Ahead
Dr. Reddy's Laboratories Ltd., Mahindra & Mahindra Financial Services Ltd., Nestle India Ltd., Bajaj Electricals Ltd., Dabur India Ltd., JSW Infrastructure Ltd., Kotak Mahindra Bank Ltd., Life Insurance Corp. of India and Tech Mahindra Ltd. will be among the major companies with record dates for their interim/final dividend in the coming week.
KPI Green Energy Ltd. and Elecon Engineering Co. will undergo a stock split in the upcoming week. MM Forgings Ltd. will turn ex-date for bonus issues this week. Apex Capital And Finance Ltd. plans to hold an extraoridnary general meeting during the week.
Arvind Smartspaces Ltd., UTI Asset Management Co. and Arvind Ltd. will issue special dividends in the upcoming week.
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