India’s benchmark indices managed to end the week gone by 1% higher even as rising Coronavirus cases kept the sentiment jittery. Renewed geopolitical tension between India-China added to their worries.
The Nifty ended the week at 10,383 while Sensex at 35,171. This was the second weekly gains for Indian markets which are up 38% from March lows.
US markets fell sharply on Friday on concerns over surge in coronavirus cases. The governor of Texas temporarily halted the state’s reopening as infections and hospitalizations surged. Despite global coronavirus cases approaching the 10 million mark, hopes of continued monetary and fiscal stimulus remain alive. MSCI’s gauge of stocks across the globe is up approximately 40% since its March lows.
In the coming week, the global cues will continue to dictate the market trend, in the absence of any major domestic event. Besides, macroeconomic data and auto sales figures will also be on the participants’ radar. Needless to say, they would continue to keep a close eye on India-China border dispute and any news of fresh escalation might not go well with the markets.
After phase one of the plan to reopening the economy in June, markets will now closely watch any signs of the second phase. This could possibly start in July.
We are at the fag end of March quarter earnings season. However, the Securities and Exchange Board of India (Sebi) extended the date for disclosing March quarter earnings till July 31.
Around 1,420 companies are expected to announce their quarterly earnings this week. Of these, 1,408 companies will declare earnings in the first two days of the week — June 29 and June 30.
Key earnings to watch out for would be ONGC, Vodafone Idea, Bharat Forge, Bharat Electronics, Petronet LNG, Central Bank of India, MRF, Force Motors, GIC Housing Finance, GMR Infrastructure, Phoenix Mills, Raymond, Shree Renuka Sugars, Deepak Fertilisers, Dish TV, Future Consumer, Godfrey Phillips, HCC, ICRA, Mishra Dhatu Nigam, NBCC, New India Assurance Company, PC Jeweller, RITES, RPP Infra Projects and SAIL
After a washout in April, auto sales in May were mixed given the gradual reopening of the economy in all non-containment zones, though the numbers in comparison to a year ago or pre-pandemic levels were very poor.
On macro economic front, the data on fiscal deficit and infrastructure output for May will be released on June 30. Current account numbers for March quarter of FY20 will also be announced on same day.
Markit Manufacturing PMI for June will be declared on July 1, while on July 3, Markit Services PMI for June, foreign exchange reserves for week ended June 26, and deposit and bank loan growth for fortnight ended June 19 will be announced.
Globally, US FOMC minutes, pending home sales for May, jobless claims outcome will be keenly watched.
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