India Week Ahead (Oct 9-13): Earning season kicks-off
Indian markets rallied last week with key indices, Sensex up 1.6%, Nifty up 1.9% and Bank Nifty up 0.6%. Markets expected to react positively on opening on Monday as the GST Council met on last Friday lowered tax rates on 27 products and a few services. It also asked a panel of state ministers to examine if the 18% GST on air-conditioned restaurants could be lowered. The Council decided to clear all tax refund claims of exporters for July by October 10 and for August by October 18.
A look at some events that will be watched out for this week:
Q2 Earning season kicks off
As many as 30 companies will report their Q2 earnings, among them will be RIL, TCS, MCX, RIIL and Karnataka Bank. After RBI left the Repo rate unchanged despite appeals from the government to cut rates, earnings will provide further cues on market movement.
IPOs this week
IPOs have been the flavour of the season, most of them have created wealth for investors. This week two IPOs will open – Indian Energy Exchange's IPO opens Oct 9-11, seeks to raise Rs 1,001 cr with a price band of Rs 1,645- 1,650/share and the State-owned General Insurance Corporation of India's (GIC Re) IPO opens Oct 11-13. The company plans to raise Rs 11,370 cr via IPO with a price band of Rs 855-912/share. GIC has 60% market share in reinsurance in India.
US FOMC to release minutes of its September meeting that may provide cues for a possible rate hike by Fed in December also further details on their balance sheet reduction plan.
A series of macroeconomic data will be released this week. September trade data to be released at 05:30pm on Tuesday. August IIP data and September CPI data will be released at 05:30pm on Thursday. CPI is expected to be at 3.6% last week increased its inflation forecast to 4.2-4.6% for H2FY18.
Sahara crown jewel Aamby Valley to be auctioned
Sahara's Aamby Valley's auction has been scheduled for October 10-11. While the top three highest bidders would be initiated by email by October 17. The successful bidder would need to deposit 50% of the bid amount by November 17 and further 25% by December 16 and then the final 25% by January 16. If the successful bidder fails to make payment, the property would be offered to the next highest bidder with a similar payment structure spread over three months. The properties on auction include an integrated hill city township spread over 6,761.642 acres in the great Sahyadri mountain range, 1,409.865 acres of land surrounding Aamby Valley City Development and land measuring 321.656 acres within the Satara district.
Idea to seek shareholders' nod on October 12 for merger with Vodafone
Idea Cellular will hold a meeting of shareholders and creditors on October 12 to seek their approval for the amalgamation of Vodafone India's business with itself. The meeting of equity shareholders, secured creditors and unsecured creditors will be held in Gandhinagar, Gujarat. It is being convened following directions of the National Company Law Tribunal (NCLT) bench at Ahmedabad, Idea Cellular said in a regulatory filing.
FM Jaitley in US for annual meeting of IMF & World Bank from Oct 9-15
FM Arun Jaitley will travel to the US to participate in annual meetings of the IMF and the World Bank. During his weeklong stay in the US he will meet CEOs of global MNCs and foreign investors. He is also likely to hold bilateral meetings with the US commerce secretary, attend the annual meeting of G-20 finance ministers' and central bank governors' meeting. He will also participate in the finance ministers' meeting with multilateral development banks. The official delegation consists of RBI Governor Urjit Patel, Economic Affairs Secretary Subhash Chandra Garg and Chief Economic Adviser Arvind Subramanian.