Reblog – The Week Ahead (Week beginning August 8, 2016)

The original blog post is written by Hemant Parikh and can be found here.

RBI’s policy outcome, corporate earnings and macroeconomic data to dictate trend.

Next batch of Q1 June 2016 corporate results, progress of monsoon rains, macroeconomic data, trends in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.

The major domestic event in the upcoming week is the Reserve Bank of India’s (RBI) third bi-monthly monetary policy meeting scheduled on Tuesday, 9 August 2016. The central bank had left its benchmark repo rate unchanged at 6.5% at its last meeting.

The progress of monsoon rains will be watched. The India Meteorological Department (IMD) in its update issued on rainfall on Thursday, 4 August 2016 said that for the country as a whole, cumulative rainfall during this year’s monsoon was 1% above the long period average (LPA) as on 3 August 2016.

Asian stock markets including Indian equities will on Monday, 8 August 2016, react to the outcome of the crucial US non-farm payrolls data scheduled to release on Friday, 5 August 2016.

The domestic earnings season almost comes to an end next week. Among key earnings slated for the week ahead, Hero MotoCorp and Idea Cellular are scheduled to announce Q1 June 2016 results on Monday, 8 August 2016. Adani Ports and Special Economic Zone and Lupin are scheduled to announce Q1 June 2016 earnings on Tuesday, 9 August 2016. Mahindra & Mahindra will announce June quarter earnings on Wednesday, 10 August 2016. Bosch and Hindalco Industries are scheduled to announce their June quarter earnings on Friday, 12 August 2016.

Among macroeconomic data, the government will announce data on industrial production for June 2016 on Friday, 12 August 2016. India’s industrial production (IIP) increased 1.2% in May 2016 over May 2015. On the same day, the inflation based on the consumer price index (CPI) for July 2016 is scheduled to be released by the government. CPI inflation accelerated to 5.77% in June 2016 from 5.76% in May 2016.

On the global front, China’s industrial production data for the month of July 2016 is slated on Thursday, 11 August 2016. Germany’s industrial production data for the month of June 2016 is scheduled to release on Monday, 8 August 2016. UK’s industrial production data for June 2016 is scheduled on Tuesday, 9 August 2016.

With GST soon to become a reality, Nifty ends at 8683 and Sensex at 28078.35
Reblog: 10-year history shows August is for the bears; can Nifty50 kiss 9K this time?

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