The Week Ahead (Oct 16 - 22) Market eyes Q2 earnings
Indian market rallied last week. Nifty50 hit fresh lifetime high on stable global cues and stock specific rally in the likes of RIL, TCS and HDFC twins. Sensex gained 2.1%, Nifty 2% and Bank Nifty 2.3% for the week.
The week will be truncated as markets will be shut on Friday on account of Diwali, will open for Mahurat Trading on Thursday evening.
A look at some events which will be watched out for:
RIL, IndusInd Bank and Bharat Finance
RIL- one of India most valuable company announced its Q2 earnings. It was yet another robust quarter, strong performance by core petchem and refining business helped clock in Rs 8,109 cr, sales at Rs 95,085 cr whereas its GRM stood at $12/bbl. Its telecom arm Jio reported a positive EBIT at Rs 261 cr, its ARPU stood at Rs 156.4, the stock hit fresh 52-week high on Friday, the stock will be in focus on Monday.
Deal street saw its second big announcement last week, after Bharti announcing to acquire Tata Group's Tata Tele and Tata Tele Maharashtra, IndusInd Bank announced acquisition of Bharat Financial via merger on Saturday. Shareholders of Bharat Financial will get 639 shares of IndusInd for every 1,000 shares held. Proposed merger will help IndusInd Bank increase it's reach. Announce share swap ratio is 11% higher than Bharat Finance's closing price on Friday. Both stocks will be in focus on Monday.
Earning season continues with several blue chip companies announcing results this week - Kansai Nerolac, Federal Bank, Bajaj Finance, DHFL, Bajaj Finserv, Zee Learn, Colgate Palmolive will announce results on Monday. CRISIL, Bajaj Auto, Aditya Birla Money, Wipro, Atul Limited, Axis Bank, ICICI Lombard, ACC will announce results on Tuesday whereas NIIT Tech, UltraTech Cement will announce their results on Wednesday.
Godrej Agrovet to list on exchanges
Godrej Agrovet will start its stock market innings on Monday after successfully concluding the initial public offer (IPO) last week. The Rs 1,157 crore IPO was oversubscribed 95.41 times. The price band was fixed at Rs 450-460 per share. Proceeds of the IPO would be utilised towards repayment of loans and other general purposes. Godrej Agrovet is an agri-business company with operations across five verticals - animal feed, crop protection, oil palm, dairy, poultry and processed foods.
Trai to meet telcos on international termination rates on Oct 16
After fixing the contentious domestic mobile call termination rates, the Telecom Regulatory Authority of India (Trai) is all set to meet the operators this month to review international termination charge, a senior Trai official said. The meeting with international long distance operators and the access providers is likely on October 16. Trai will ask the operators to give a presentation on the global practices, factors affecting such rates and suggest suitable methods for deriving the international termination charges.
September WPI data
September WPI data will be released at 12 noon on Monday, expected to be at 3.6% vs 3.36% MoM, September CPI soften at 3.3%, the Reserve Bank at its policy review meeting earlier this month kept the key interest rate unchanged at 6% citing upward trend in inflation. Fall in inflation may prompt RBI to cut rates in its December Policy review.
China's 19th National Party Congress
Global market will set its eye on China as the 19th National Party Congress is set to commence on Wednesday. Market will be holding out for the economic and political changes out of this meeting which will shape the economy’s direction for the next five years. China Q3 GDP data to be released on Thursday expected to be 6.8%.
Japan goes to poll on October 22
Japan goes to poll on Oct 22, Sunday, Shinzo Abe government seeks to improve his Liberal Democratic Party’s position in the parliament. Japanese economy in the form of its gross domestic product expanded in the second quarter of the year, for the sixth quarter in a row by an annualized 4%.