The upcoming week marks a historic moment with Donald Trump’s swearing-in as the 47th U.S. president, coinciding with the World Economic Forum in Davos, where global leaders and industry giants will tackle critical issues like climate change and inequality.
Back in India, the third-quarter earnings season picks up pace, with major firms like Zomato Ltd., Bharat Petroleum Corporation Ltd., HDFC Bank Ltd., and Hindustan Unilever Ltd. set to announce their results.
Investors are increasingly adopting a risk-averse stance due to the strengthening of the dollar, according to Vinod Nair, Head of Research, Geojit Financial Services.
The market is expected to remain cautious in the short term due to moderate third quarter expectations, while persistent foreign outflows could add to higher volatility, Nair said. "Looking ahead, the incoming US president’s policies and comments will be keenly watched with a focus on tariffs. Higher inflation in Japan or tighter policy from BoJ will weigh on market sentiments."
Markets This Week
The NSE Nifty 50 and BSE Sensex have extended their fall for the second consecutive week, with HCL Technologies Ltd. and Infosys Ltd. as the top losers.
Information technology was among the worst performing, with Nifty IT falling nearly 6% in the week that comprised the third quarter earnings.
Through the week Hindalco Industries Ltd., NTPC Ltd., Adani Ports and Special Economic Zone were the top gainers, while HCLTech, Infosys, Axis Bank Ltd., and Hindustan Unilever Ltd. were among the worst performers.
On a weekly basis, the NSE Nifty 50 fell 0.97%, while the BSE Sensex fell 0.98%.
This week, eight sectors declined and four advanced out of the 12. The NSE PSU Bank rose the most, and the NSE IT underperformed other sectoral indices.
Domestic Cues And Q3 Earnings
India's HSBC Manufacturing and Services PMI will be the key economic data that will be closely watched on Friday.
The manufacturing activity expanded at a slower pace in December of 2024 to come in below expectations. The services index rose from 58.4 in November to 59.3 in December, highlighting the strongest rate of expansion in four months.
Several prominent companies are set to release their earnings this week, providing key insights into the performance of various sectors. The lineup includes Zomato Ltd., Bharat Petroleum Corporation Ltd., HDFC Bank Ltd., Hindustan Unilever Ltd., Adani Green Energy Ltd., Hindustan Petroleum Corporation Ltd., and JSW Steel Ltd.
Global Cues
The week will begin with a landmark moment on Monday, as Donald Trump will be sworn in as the 47th president of the United States. Further, the World Economic Forum kicks off in Davos, Switzerland, drawing heads of state, central bankers, and business leaders to discuss pressing global issues.
Monday is also a federal holiday in the United States, commemorating Martin Luther King Jr., with the stock market being closed. Additionally, China is set to release its loan prime rates, and Japan will publish data on its tertiary index, machinery orders, and industrial production.
On Tuesday, Jan. 21, Hong Kong will release its Consumer Price Index, providing insights into inflation trends in the region.
Japan will release trade data, while the United States updates its weekly jobless claims on Thursday.
Friday will see Japan’s consumer price index and a rate decision, alongside Taiwan's GDP figures, offering a snapshot of the region's economic growth.
Primary Market Action
India's primary market is set to gain more momentum going into the week starting Jan. 20, with four new issues and seven listings.
Among the new public issues, the maiden offering of Denta Water and Infra Solutions Ltd. will be the only one in the mainboard segment. The IPO will open at a price band of Rs 279 to Rs 294 per share with a face value of Rs 10 each.
The water and infrastructure solutions company will open for subscription on Jan. 22 and will close on Jan. 24. The IPO comprises only a fresh issue of equity shares of up to 75 lakh and will have no offer-for-sale component.
Meanwhile, on Monday, Capital Numbers Infotech Ltd. will open at a price band of Rs 250 to Rs 263 per share in the SME space. The company aims to raise Rs 169.37 crore.
On Wednesday, the IPO of Rexpro Enterprises Ltd. will open for bidding at an issue price of Rs 145 per share. GB Logistics Commerce Ltd. will be the final issue for the week, which will open on Friday.
On the listings front, two companies will debut on the national bourses in the upcoming week.
Laxmi Dental Ltd. will be listed on the National Stock Exchange and BSE Ltd. on Monday after the issue was subscribed 114.42 times on its final day, led by non-institutional investors. Shares of Stallion India Fluorochemicals Ltd. will debut on Thursday. The IPO was subscribed 32 times on the second day, and the bidding will continue on Monday.
In the SME space, Barflex Polyfilms Ltd. will debut on Monday while Rikhav Securities Ltd. and Kabra Jewels Ltd. list on Wednesday. Landmark Immigration Consultants will debut on Thursday, and EMA Partners India Ltd. will list on Friday.
Corporate Action
Some of the key companies have some announcements lined up for the week ahead. Shares of Angel One Ltd., Bhansali Engineering Polymers Ltd., Mastek Ltd. and Waaree Renewable Technologies Ltd. will turn ex-date for the issue of interim dividends. Meanwhile, shares of B.N.Rathi Securities, Nava, Insolation Energy and Blue Cloud Softech Solutions Ltd. will turn ex-date for its stock split.
The table below shows the full list of corporate actions for the upcoming week.
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