India Week Ahead: Q2 earnings to dominate the market this week
Indian market rallied last week post bank recap measure and infra spend announced by the Central government. Key indices – Sensex gained 1.8%, Nifty 1.7% and Bank Nifty rose 3.4% for the week.
Biggest three central banks rate decision
Central banks of major economies will meet this week to decide on the monetary policy setting. Bank of Japan will meet Monday-Tuesday to decide on interest rate decision. BoJ is widely expected to keep rates unchanged.
US Fed will meet Tuesday-Wednesday and may keep rates unchanged as inflation has fallen to a 2-year low and a further decline could weaken case for a rate hike by Fed. Fed kept rates unchanged in its September review and announced that it would be beginning to shrink its massive $4.5-trillion balance sheet.
Bank of England will review the monetary policy on November 2, expected to hike rates as inflation in Britain has hit 3% for the first since early 2012, a development that reinforces expectations that the Bank of England will raise interest rates next month for the first time in a decade.
Q2 earnings continue
Earnings for second quarter to continue throughout the week with HDFC, UPL Limited, Wockhardt Limited, Central Bank of India, Tata Steel, Welspun Corp, LIC Housing Finance, Lupin, Marico, Bharti Infratel, Reliance Home Finance will detailing their numbers on Monday. Syndicate Bank, Strides Shasun, Divi's Labs, IDBI Bank, DRL, InterGlobe Aviation, SBI Life, Bharti Airtel, JSW Steel on Tuesday. Hexaware, GCPL, TVS Motor, Tech Mahindra, Hero MotoCorp on Wednesday. Hindalco, Vedanta and Tata Power will announce results later in the week.
IPO rush continue
The IPO rush at Dalal Street continues. After a blockbuster IPO of Reliance Nippon Life, three more companies - Mahindra Logistics, New India Assurance and Khadim India – will tap the primary market to raise funds. M&M Group's unit Mahindra Logistics' IPO will open on October 31- November 2, its price is fixed at Rs 425-429 and is looking to raise up to Rs 829 crore.
One of largest insurer of the country New India Assurance's IPO will open November 1-3 with a price band of Rs 770-880, the company is looking to raise around Rs 9,700 crore through IPO. New India Assurance is fully owned by the Government of India.
Footwear retailer Khadim India is looking to raise Rs 543 crore through IPO that will open November 2-6, the price band of the IPO is fixed at Rs 745-750. Company intends to repay loans from the proceeds of the IPO and some part will be used for general corporate purposes.
India's fiscal deficit and core sector data for September will be released on Tuesady at 5pm. October PMI Mfg data will be released at 10.30am on Wednesday and services PMI on Friday.
October auto sales data
Auto companies will be in focus this week as it release its monthly sales data. October data will be crucial as it will reflect this year's festive demand. Hero Moto Corp sold over 3 million units on Dhanteras festival.
Facebook, Google, Twitter asked to testify on Russian meddling
Reuters have reported that Executives from Facebook, Alphabet Inc’s Google and Twitter have been asked to testify to the US Congress on Wednesday as US lawmakers probe Russia’s alleged interference in the 2016 US Presidential election. The leaders of the House of Representatives Intelligence Committee said the panel would hold an open hearing with these companies in an effort to “better understand how Russia used online tools and platforms to sow discord in and influence US election.