After another week of stellar rally, all eyes will shift to first-quarter earnings that are set to begin in the upcoming week. India's equity market will also be guided by key inflation figures in India, the US and China.
Tata Consultancy Services Ltd. will kickstart the earnings for the Nifty 50 companies in the upcoming week, followed by HCL Technologies Ltd.
Follow the link for latest updates on Tata Consultancy Services Q1 results: TCS Q1 Results Live Updates
Activity in the primary markets will remain subdued after weeks of action-packed issues and listings. While there are no mainboard public issue launches, the week ahead will see listings of two mainboard companies.
In another key event, on his first international trip after being elected as the Prime Minister for the third term, Narendra Modi will visit Moscow and hold talks with the Russian President Vladimir Putin.
Over the next few weeks, the key events for the market include macro factors, the Union budget and the Q1 FY25 earnings, according to Shrikant Chouhan, head of equity research at Kotak Securities. "Individual stocks will be in focus on Q1 FY25 earnings and management commentary over coming few weeks."
Markets Last Week
India's equity gauges rose for the fifth week to record the best streak of weekly gains in over six months.
The NSE Nifty 50 and the 30-stock Sensex rose 1.30% and 1.22%, respectively, in the week-ended July 5 to record a straight fifth-week gain. The benchmarks recorded the best winning streak since Dec. 11, 2023, when the indices rose for seven consecutive weeks.
During the week, 11 sectors logged gains and one declined out of 12. The NSE Nifty IT emerged as the top performing sector by climbing over 4% during the week. NSE Nifty PSU Bank declined the most as it fell marginally by 0.12%.
Gains in the shares of Reliance Industries Ltd., State Bank of India, and Larsen & Toubro Ltd. helped the indices erase losses during the last leg of trade on Friday.
In the coming days, the benchmark index might undergo a period of consolidation, potentially alleviating the stretched parameters, according to Osho Krishan, senior analyst of technical and derivatives at Angel One Ltd. "Market sentiment remains positive, with sectoral rotation contributing to a strong undertone."
Domestic Cues
The country's inflation print and the industrial production numbers will be the key figures to watch out for during the week on the domestic front. All eyes will also be on Prime Minister Modi's visit to Moscow on July 8, where he will hold talks with Russian President Putin.
On July 12, the National Statistical Office will release India's consumer price index and the industrial production figures that might shift investor sentiments.
India's retail inflation in May eased to the lowest in a year, led by continued reduction in fuel costs and steady food prices. The Consumer Price Index-based inflation stood at 4.75% in May, as compared to 4.83% in April. Meanwhile, India's industrial output eased to a three-month low in April amid weak manufacturing.
Global Cues
US consumer inflation print, Jerome Powell's speech in the Senate Banking Committee, and the United Kingdom's industrial production data will be among the major global cues for the week starting July 8. In the Asian markets, China's inflation print and trade data will be the major triggers.
On July 9, Chair Jerome Powell will deliver the Federal Reserve’s semi-annual testimony to the Senate Banking Committee.
On the same day, the new UK Parliament will hold its first meeting for members to take the oath of office. Keir Starmer's Labour Party swept to a landslide victory in the UK elections, dealing a crushing blow to Rishi Sunak's Conservative Party.
US CPI and their initial jobless claims will be released on July 11. June's inflation print in the US is likely to show further signs of cooling inflation as Fed policymakers ponder when to start cutting rates.
Q1 Earnings This Week
Tata Consultancy Services will kickstart the earnings season for the first quarter of fiscal 2025. During the week, six companies will report their earnings, with Tata Consultancy Services and HCL Technologies being the only Nifty companies.
Indian Renewable Energy Development Agency Ltd., Anand Rathi Wealth Ltd., Tata Elxsi Ltd. and Shalby Ltd. will also report their earnings for the quarter gone by during the week.
Primary Market Action
The primary market will see subdued action after weeks of strong activity. The upcoming week will only see one initial public offering, which will be in the small and medium enterprise space.
Sahaj Solar Ltd. will raise Rs 52.56 crore via an entirely fresh issue of 29.2 lakh shares. The issue price for the IPO is set in the Rs 171-180 price band.
Meanwhile, the week starting July 8 will see the listing of five companies, with two in the mainboard space. Shares of Emcure Pharmaceuticals Ltd., and Bansal Wire Industries Ltd. will debut on the national bourses on July 10.
A stronger H2 CY25 for the IPO market is expected, with increased activity, potentially larger deals and new listings across diverse sectors, according to Mahavir Lunawat, managing director of Pantomath Capital Advisors Pvt.
Corporate Action Ahead
DCM Shriram Ltd., JK Cement Ltd., JSW Steel Ltd., Persistent Systems Ltd., Axis Bank Ltd. and Sun Pharmaceutical Industries Ltd. will be among the major companies with record dates for their interim/final dividend in the coming week.
Shares of PG Electroplast Ltd., Bridge Securities Ltd., and Vantage Knowledge Academy Ltd. will undergo a stock split in the upcoming week.
In the same week, July 11 will be the ex and record date for the spinoff of Raymond Ltd.'s lifestyle arm, Raymond Lifestyle Ltd. The Lifestyle arm will issue and allot four fully paid-up equity shares with a face value of Rs 2 apiece for every five Raymond shares of Rs 10 each.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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