Q1 earnings, FII action, auto sales among 9 factors to keep Dalal Street busy this week

MUMBAI: After clocking gains for four consecutive weeks, benchmark indices gave up gains last week as investors booked partial profits.

The week ahead is also expected to be a busy one for Dalal Street investors, as a slew of companies are scheduled to release quarterly earnings.

This is likely to keep action extremely stock-centric. Moreover, foreign investors have slowed down their pace of buying.

While the overall trajectory for markets remains positive, consolidation is likely on cards after the strong rally in the recent months.

“In the coming days, domestic earnings will remain a crucial driver, while global cues will also play a vital role in shaping market trends,” said Vinod Nair, head of research, Geojit Financial Services.

Q1 Earnings
Maruti Suzuki India, Power Grid Corporation of India, Adani Transmission, Adani Green Energy, Titan Company, Bharti Airtel, Adani Enterprises, Sun Pharmaceutical Industries, InterGlobe Aviation, Ambuja Cements, Gail (India), Bosch, UPL, HPCL, Dabur India, Eicher Motors, Zomato, State Bank of India, Mahindra & Mahindra, Britannia Industries, BHEL and Delhivery are some of the big ones scheduled to release their earnings in the week ahead.

So far, companies have reported largely in line numbers, with some disappointments in the IT sector. “With the markets trading at valuations ahead of long term averages, the key focus would be on the delivery of earnings,” said Shibani Sircar Kurian, senior EVP and Head – Equity Research, Kotak Mahindra Asset Management Co.

Macroeconomic Data
The government will release GST collections for July on August 1. The manufacturing PMI data will be released by S&P for major countries, including India

The Services PMI data will also be released in the week ahead.

Automobile Sales
The wholesale sales data for July will be released by automobile companies on August 1. Analysts hope for the sales momentum to sustain, but the outlook for the coming months will be closely tracked by Dalal Street investors.

Global Markets
With the US Federal Reserve’s policy action behind, there are no major triggers on the global front. However, investors will take cues from global markets in early trade.

FII Flows
After seeing strong flows in the early part of July, foreign institutional inflows slowed down significantly in the week gone by. Foreign portfolio investors net invested a mere Rs 468 crore in domestic markets during the week ended July 28, compared to Rs 7,804 crore in the preceding week.

Their strategy will, therefore, be crucial for the momentum in the market to sustain and for indices to inch northwards.

IPO Watch
The primary market has been quite active with a slew of public issues and the trend is likely to continue in the week ahead.

SBFC Finance’s public issue will open for subscription on August 3, while that of Concord Biotech will open on August 4.

Among SME firms, Oriana Power and Vinsys IT Services will open their public issues for subscription on August 1, while Yudiz Solutions will open on August 4.

Corporate Action
A slew of companies’ stocks will trade ex-dividend in the week ahead. Some big ones are Larsen & Toubro, which will trade ex-date for Rs 24 dividend payout on August 2.

Hawkins Cookers will trade ex-date for the Rs 100 a share dividend on August 2, while United Breweries will trade ex-date for Rs 7.50 a share.

AGMs
Several companies are scheduled to conduct their annual general meetings in the week ahead. Titan, Lupin, Delta Corp, DLF, Mahindra & Mahindra, and Union Bank of India, among others will conduct the AGMs next week.

Technical Indicators
After the positive chart pattern like higher tops and bottoms on the daily charts, benchmark Nifty 50 seems to have formed a new lower high, according to technical analysts, which reflects ongoing downward correction in the market.

This is also suggesting a possibility of selling pressure emerging on any upside bounce from here, said Nagaraj Shetti, technical analyst, HDFC Securities.

From the current level, until the Nifty breaks below 19550, no directional down move is expected or the market may not favour aggressive shorts, said Rupak De, senior technical analyst, LKP Securities.

On the other side, below 19550, the index may fall towards 19300. Resistance on the higher end is placed at 19700.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)