PMI Print, Hyundai Motor Listing, Q2 Results — The Week Ahead

The week ahead will see global and domestic market action, with several key events like quarterly earnings of, the listing of Hyundai Motor India Ltd., PMI data, and key global indicators like the announcement of US jobless claims likely to shape sentiment.

Equity markets globally will be keeping an eye on US manufacturing PMI, existing home sales, and data for crude oil inventories. UK services PMI and UK manufacturing PMI will also be key data points to look out for in the coming week.

Topping the week off, the US September jobs report will be released on Friday, a crucial indicator for the Fed as it navigates the impact of its recent 50-basis-point rate cut.

On the domestic front, an exciting week for the initial public offerings is expected, with the public issue of eight companies and three listings. HCL Technologies, LTIMindtree, and L&T Technology Services will also be in focus as they approach the record date for their dividend.

India's benchmark indices closed lower for the third consecutive week. The Nifty 50 and the Sensex closed 0.44% and 0.19% lower, respectively, in the week ended on Oct. 18.

The NSE Nifty 50 and BSE Sensex snapped a three-session losing streak on Friday, ending 104.20 points or 0.42% higher at 24,854.05, and the Sensex ended 218.14 points or 0.27% higher at 81,224.75.

The foreign portfolio investors offloaded stocks worth Rs 5,485.7 crore on Friday, according to provisional data from the National Stock Exchange. The domestic institutional investors, on the other hand, bought stocks worth Rs 5,214.8 crore.

In the week ended Oct. 18, eight out of the 12 sectors on the NSE ended lower and four closed higher. The Nifty Auto declined the most, while the Nifty Bank rose the most.

India's benchmark stock index, NSE Nifty 50, is showing negative sentiments on both daily and weekly charts, according to analysts. They stated that a fresh sell-off may only be possible after the dismissal of 24,650.

"Technically, on weekly charts it has formed a bearish candle; on daily charts it is holding a lower top formation, which is largely negative," said Amol Athawale, vice president of technical research at Kotak Securities.

Conversely, the area around 24,900 could serve as a key resistance level for buyers; if the index breaks these levels, then it can see a continuation of the retracement trend, potentially reaching 25,000-25,050.

For Bank Nifty, 50-day simple moving average levels would act as a key trend indicator for short-term traders, added Athawale. If it stays above these levels, then it could rise towards 52,500, with the potential of going up to 53,000. However, if the index falls below these levels, then it may prompt traders to consider existing long positions.

One of the major triggers for the markets on the domestic front will be the earnings season. UltraTech Cement, Zomato, TVS Motors, ITC, Godrej Consumers, BPCL, Coal India, JSW Steel, Yes Bank, and ICICI Bank are some of the major companies announcing their earnings in the coming week.

The other trigger could be the RBI MPC Meeting minutes that will be released on Oct. 23. Nikkei S&P Global Manufacturing PMI and Nikkei Services PMI are other important data points releasing in the coming week.

India's foreign exchange reserves data for the week ending Oct. 18 will be released on Oct. 25.

Among important events in the week, Prime Minister Narendra Modi will be visiting Russia for the 16th BRICS Summit from Oct. 22 to Oct. 23. PM Modi is expected to hold bilateral meetings with his counterparts from BRICS member countries and other invited leaders.

US Manufacturing PMI and US Services PMI will be important data points releasing in the upcoming week in addition to US Initial Jobless Claims. US existing home sales and new home sales data are also due in the coming week.

Data for crude oil inventories will also be released on Oct. 23.

US unemployment claims dropped by 19,000 in the week ending Oct. 12 to 241,000, coming in well below market expectations of 260,000. The data for the week ending October 19 is to be announced.

In addition, US durable goods orders for the month of September will be released on Oct. 25.

UK Services PMI and UK Manufacturing PMI will also be announced on Oct. 24.

Tesla, Coca-Cola, Amazon, GE Aerospace, S&P Global, and Colgate-Palmolive Company are set to announce their quarterly results in the coming week.

India's primary market is set for an active week, with the public issue of eight companies and three listings, including Hyundai Motor India Ltd. The week beginning Oct. 21 will see the opening of three mainboard issues along with five others in the SME space.

Godavari Biorefineries Ltd. is in the business of manufacturing ethanol-based chemical products in India with an integrated refinery. The IPO will open for subscription from Oct. 23 to Oct. 25. The IPO has a total size of Rs 554.8 crore, and the funds raised will be used for repayment of borrowings worth Rs 240 crore.

The IPO of Waaree Energies is a combination of a fresh issue of 2.4 crore equity shares and an offer for sale of 48 lakh shares, according to the red herring prospectus. The Rs 4,321.4 crore IPO will open on Oct. 21 and has a price band between Rs 1,427 and Rs 1,503 per share.

Deepak Builders & Engineers India Ltd. will also launch its IPO, which opens for subscription on Oct. 21 and closes on Oct. 23. The Rs 260 crore IPO comprises a fresh issue of 1.07 crore shares and an offer for sale of 21 lakh shares.

Three IPOs are set to list this week, including Hyundai Motor India Ltd., which closed on Oct. 17, helped by institutional buyers. The Rs 27,870-crore IPO got bids for 23 lakh shares against nine 9 lakh shares on offer. The IPO is expected to list on Oct. 22.

Lakshya Powertech Ltd. and Freshara Agro Exports Ltd., each of which recently completed their subscription periods and are expected to list on Oct. 23 and Oct. 24, respectively.

Next week, HCL Technologies, LTIMindtree, and L&T Technology Services, along with several other companies, are expected to be in the spotlight as they approach their record dates for dividend declarations, bonus issues, and stock splits.

On the other hand, Matrimony.com has announced the buyback of shares between Oct. 21 and Oct. 25.

The record date for the stock split of Mayukh Dealtrade, POCL Enterprises, and Sukhjit Starch & Chemical has been set as Oct. 25.