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    Q1 results, RIL AGM among 7 factors likely to drive market in the week ahead

    Synopsis

    Going by the buzz on D-Street, here are some factors that should guide the market next week.

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    Going into a new week, market participants will now turn their attention on June quarter earnings, inflation data and progress of the virus.
    NEW DELHI: The domestic equity indices remained buoyant in a week that saw a further spike in coronavirus cases across India and other countries, and rose a further 1.5 per cent.

    However, analysts on Dalal Street believe the bulls have developed fatigue and the rally may halt soon.

    Going into a new week, market participants will now turn their attention on June quarter earnings, inflation data and progress of the virus.

    “The market is likely to turn volatile, as earnings announcements have started to come out for what was a washout quarter for most industries. This uncertainty combined with profit booking after the recent rally would keep volatility high. Investors would do well to stay cautious and remain stock specific in this market," said Vinod Nair, Head of Research at Geojit Financial Services.

    Going by the buzz on Dalal Street, here are some factors that should guide the market next week:

    Q1 earnings: Wipro, Infosys, Delta Corp
    In the second week of June quarter earnings, companies like Delta Corps, Mindtree and Wipro will announce their numbers on July 14, followed by Bandhan Bank, Federal Bank, Infosys, L&T Infotech and Minda Corp on the next day. On July 16, Bajaj Consumer and Cyient will unveil their numbers while Balkrishna Industries, Britannia Industries, Granules India and ICICI General Insurance will report theirs on July 17. HDFC Bank and M&M Financials are scheduled to come out with their numbers on July 18.

    RIL AGM on July 15
    Reliance Industries will hold its AGM on July 15. This is one of the most-tracked annual general meetings in India thanks to a trend of mega announcements during the event. After a slew of big-bang announcements in the last few months, the company in this AGM may just focus on the path ahead. It is widely expected to give more updates on the status of some of the announcements made at the last AGM, and provide an update on media reports surrounding a stake buy in Future Group.

    Rossari Biotech IPO opens
    The initial public offering (IPO) of Rossari Biotech will open on July 13. The price band for the issue has been fixed at Rs 423-425 apiece. The specialty chemicals firm on Friday raised Rs 148.87 crore from anchor investors. Rossari Biotech intends to raise Rs 496 crore via the fresh issue of Rs 50 crore and offer for sale (OFS) of Rs 446 crore.

    Second tranche of Bharat Bond ETF

    The second tranche of Bharat Bond ETF will open on July 14 for subscription. The issue will close on July 17. There will be two ETFs in this series maturing in 2025 and 2031. The ETF will include papers of some of the most stable government-owned companies. Edelweiss Mutual Fund, which is managing the issue said it plans to raise Rs 3,000 crore with a green-shoe option of Rs 11,000 crore.

    Covid-19 ravages India
    India’s battle with Covid-19 has grown even more intense with outbreaks seen in many more quarters putting a strain on the already precarious healthcare system in the country. Delhi and Mumbai are two of the most affected cities. As of Sunday morning, India had recorded 8.5 lakh cases with over 22,800 deaths.

    Fresh lockdown in some parts
    As coronavirus cases kept on mounting at an unprecedented pace, many states and cities have decided to put their citizens under lockdown again. Pune is likely to be shut down next week after record high new infections. An extended curfew has been enforced in Aurangabad. The Uttar Pradesh government has ordered all the businesses to keep shut. Bangalore said it would soon go for a complete lockdown.

    Inflation data due
    The consumer inflation data for June will be released on July 13. Market watchers will keep an eye on the number as rising inflation could force the Reserve Bank of India to pause further monetary easing. Last month, the government released only a part of the retail inflation data, which showed a 9.28 per cent spike in food prices in May. Trade balance data for June will be released on July 15.

    Nifty outlook: 10,600 level key

    The current stocks rally unfolded in the form of Rising Wedge formation and at the current juncture Nifty is trading around the resistance of rising wedge and approaching the crest of the wedge. The participation in the rally is not broadbased, only a few heavyweights are driving the index higher. “Bank Nifty, which had been rising mutedly until now, outperformed the benchmark during the week gone by and financial stocks have contributed the most to Nifty gains. The market is a little stretched in the short term and we expect very limited upside. A break below 10,600 on Nifty will significantly dent the strength of the bulls,” said Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote.

    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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    6 Comments on this Story

    arunachalam arun28 days ago
    just propagate as disaster is yet to come be fearful and drive all the retail investors out of the market and want to enjoy the up moves and future benefits selfishly is the plan of analysts and institutions...... be bold and stay invested stock specifically to make the most my dear brothers.....
    RAKESH KODAVOOR28 days ago
    Seeing some of my friends behavior (They work in Infosys) for the past 3 months Infy Q1 should be good. My friends always say that they are busy whenever I call them. Seems like they don't even have time to shave. They look like baba ramdev nowadays ð
    Animesh Ghosh28 days ago
    dasd asd asds
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