The bulls were in total control last week as Sensex marched ahead to climb 32,000 and Nifty crossed 9,900 level. Bullishness was seen across the board with Nifty gaining 2.3 percent, Sensex 2.2 percent, Bank Nifty 2.2 percent, BSE Midcap 1.7 percent and BSE Smallcap 0.5 percent for the week. IT index gained 2.6 percent with Infosys and TCS announcing Q1 earnings last week.
A look at some key events to watch out for this week:
Monsooon session of Parliament
The Monsoon session of the Parliament begins July 17 (Monday). Finance Ministry is gearing up to introduce a host of Bills, among other the Banking Regulation (Amendment) Bill, repeal of the State Bank of India (Subsidiary Banks) Act, 1959, in the upcoming Monsoon Session. Besides, Ministry is working on the Banning of Unregulated Deposit Schemes and Protection of Depositors Interests Bill. According to PTI report the Department of Financial Services (DFS) is preparing a draft Bill in this regard and will shortly approach the Cabinet for its nod. The proposed legislation seeks to provide a comprehensive code to ban unregulated deposit schemes and protect interests of depositors.
Race to Raisina Hills
Voting for the Presidential election will be held on July 17 (Monday). India will get its new President when the votes are counted on July 20 (Thursday). Incumbent Pranab Mukherjee's term gets over on July 25. While NDA has fielded Ram Nath Kovind a prominent dalit face and former Governor of Bihar, Congress-led UPA has fielded Former Lok Sabha Speaker Meira Kumar as their candidate for President.
Q1 earnings continue
The earning season kicked off with TCS and Infosys announcing their Q1 earnings. While TCS disappointed with their PAT, Infosys posted a better than expected results. A slew of earnings will be eyed by markets this week as ACC, Jubilant Food will announce their Q1 on July 17 (Monday), Jubilant Life, Crisil, Ultratech Cement on July 18 (Tuesday), Bajaj Finserve, Havells, KPIT Technologies, Mindtree on July 19 (Wednesday), RIL, Bajaj Auto, Kotak Bank, Wipro on July 20 (Thursday) and Ashok Leyland, Persistent Systems on July 21 (Friday).
BoJ & ECB meet to decide on rates
Bank of Japan will hold its two-day monetary policy meet on July 19 - 20 and is expected to keep interest rates unchanged at -0.1 percent but some announcement on stimulus expected. Along with Interest Rate Decision at 08:30 am on July 20 (Thursday), BoJ will also release its Quarterly Outlook Report at 10:30am. ECB too is expected to keep rates unchanged in its monetary policy meet on July 20 (Thursday), announcement expected at 05.15pm IST followed by press meet at 06pm IST.
China economic data
China is expected to release its Q2 GDP data on July 17 (Monday). Q2 GDP Growth Rate expected at 6.8 percent vs 6.9 percent earlier. China's June IIP expected to be at the same pace at 6.5 percent, Retail Sales for the month of June expected at 10.6 percent vs 10.7 percent.
Post announcing FY18 Q1 earnings on July 20 (Thursday), RIL will hold its AGM a day later. The stock is up 3 percent in last 5 days, traders are playing for a range of 1,400-1,600, currently it is trading at 1,530 levels. As buying has started to come back in oil marketing companies accumulation of the stock should continue. RIL Chairman Mukesh Ambani is expected to give out details of the company's foray in 4G feature phone, further update on Jio rollout, subscribers and Petcoke gasification commissioning.
NSE gets a new CEO
Vikram Limaye will take over as the next MD & CEO on July 17 (Monday), expected to meet press the same evening and share his plans on restoring the image of India's largest exchange. NSE which has been in the eye of the storm for providing premium access to some of its clients which is against SEBI norms. Its Former MD & CEO Chitra Ramakrishna and Founder Ravi Narain had to quit from their post pending enquiry. Last week NSE's server collapsed and it resuted in trade suspension three time in a day. NSE blamed a technical glitch for the collapse.
HDFC Life board meet on July 17
HDFC Life board will meet on July 17 to decide on the key issue of IPO or merger. HDFC Life and Max may prepare new deal structure as it has extended deadline for merger talks to July 31, 2017. Both comapanies are working on a new merger structure under which HDFC Life and Max will merge to form a new company which may be named HDFC Plus.
Fight against bad loans
Indian government's fight against bad loans will continue. Monnet Ispat which is one of the 12 companies referred by RBI to banks to take to insolvency is matter listed for further hearing on July 17 (Monday). SBI has filed Insolvency Plea against Bhushan Steel with the Law Tribunal last week. The NCLT has asked Bhushan Steel to reply on insolvency plea of SBI by July 18. NCLT will hear SBI's Insolvency Plea vs Bhushan Steel On July 19. Earlier a report suggested that the four steel companies — Bhushan Steel, Bhushan Power & Steel, Electrosteel Steels, and Monnet Ispat and Energy are planning to cooperate with lenders, instead of trying to stall insolvency proceedings in courts.
TRAI meet with telcos
TRAI will meet telcos on floor price of spectrum among other sectoral issues. The Inter-Ministerial Group formed to look into the issues of telecom sector is likely to submit report on telcos financial woes this week.