INSUBCONTINENT EXCLUSIVE:
NEW DELHI: After months of indecisiveness and dullness, barring some intermittent sparks, the bulls put up a brilliant show during the week
gone by.
Buoyed by a sharp drop in crude oil prices, a recovery in the rupee and earnings optimism, domestic equities scaled record highs
during the week.
On a weekly basis, the SP BSE Sensex gained 2.47 per cent while the broader Nifty50 index of the National Stock Exchange
(NSE) shut shop with 2.28 per cent gains.
Going forward, June quarter earnings, macro data and geopolitical developments will continue to
influence investor sentiment.
Here's a lowdown on the key factors that are likely to steer market in the coming week -June quarter
earningsAn action-packed week awaits on the earnings front, as several big names are scheduled to announce their Q1 numbers
FMCG major Hindustan Unilever (HUL) is slated to release its results on Monday, July 16, while Zee, Crisil and Ashok Leyland will announce
theirs on Tuesday, July 17
Bandhan Bank, JK Tyre, Mindtree, RCom and Ultratech Cement are expected to declare earnings on Wednesday, July 18
Bajaj Finserv, Bajaj Finance and Kotak Mahindra Bank will announce their numbers on Thursday, July 19
Wipro, Bajaj Auto, MCX and HDFC Standard Life Insurance Company will release theirs on Friday, July 20.
WPI numbersOn the macro front, the
government will announce wholesale price inflation (WPI) for June 2018 on Monday, July 16
Wholesale inflation accelerated to a 14-month high in May, driven by a broad-based increase in prices that had spilled over to the retail
WPI rose by 4.43 per cent YoY in May 2018, compared with 3.18 per cent in April and 2.26 per cent a year earlier.
Stock-specific actionsPC
Jewellers will remain in focus when trading resumes on Monday after the company on Friday withdrew a May 10 proposal wherein it had
announced a plan to buy back shares worth Rs 424 crore from shareholders
Aurobindo Pharma on Saturday said it had signed a definitive agreement to acquire Apotex's businesses in Czech Republic, Poland, Spain,
Belgium and the Netherlands for 74 million euro.
This apart, Dr Reddy's Laboratories would be in focus after the New Jersey District Court
granted a preliminary injunction against the domestic drugmaker on sale of a generic version of Indivior's prescription medicine Suboxone
in the US market.
Trump-Putin meetUS President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Helsinki on
Geopolitical analysts expect Putin to urge Trump to soften sanctions imposed over Ukraine, while Trump has said he would press Putin on
everything from allegations of meddling in the 2016 US election to the war in Syria, Reuters reported.
Global cuesChina's GDP data for
second quarter will be unveiled on Monday, July 16
The Chinese economy expanded 6.8 per cent year-on-year in the quarter ended March 2018, the same pace as in the previous two quarters
Markets will closely monitor the data as the first salvos have been exchanged in a trade war with the United States
It is expected to show growth easing very marginally to 6.7 per cent, says Reuters report
Rupee, crude pricesInvestors will keep an eye on the movement of the rupee against the US dollar and swings in crude prices.
The rupee on
Friday surged to a three-week high of 68.31 before closing marginally up by four paise at 68.53 against the US currency mirroring late
losses in stock markets and capital outflows
Oil prices rose on Friday but declined for the week as supply concerns eased
Earlier on Wednesday, crude prices plunged 5 per cent for its worst daily performance in over a year amid trade war tensions and reports the
US could consider waivers on sanctions against Iran.
Powell's testimony on July 17According to a report by Reuters, US Federal Reserve
Chairman Jerome Powell will deliver his semiannual monetary policy report to the Senate Banking Committee on July 17
control but without going so far or fast that it slows the economy," the report said.
Tech chartThe Nifty50 index on Friday formed a small
bearish candle on the daily chart, signalling the possibility of a near-term pause in the ongoing momentum
However, a bullish candle was clearly visible on the weekly chart with a full-fledged breakout above the eight-week consolidation zone, said
Mazhar Mohammad of Chartviewindia.in
Weekly momentum oscillators such as 14-day RSI and ADX are all signalling a sharp upside momentum in the market, said Nagaraj Shetti of HDFC
He sees strong resistance for Nifty50 in the 11,170-200 zone in the coming week.
