Q2 Earnings Pick Up, Key Economic Data, IPO Slow Down And More — The Week Ahead
The domestic earnings season gathers pace with results from Nifty 50 constituents, including tech giants like HCL Technologies, Infosys, Wipro, and LTIMindtree.
The week ahead is poised for significant action with heavy names set to announce second quarter results. The calendar is also busy with major key global and domestic economic data. The domestic earnings season gathers pace with results from Nifty 50 constituents, including tech giants like HCL Technologies, Infosys, Wipro, and LTIMindtree, and banking heavyweights like HDFC Bank, ICICI Bank, Axis Bank, and IndusInd Bank.
On the macroeconomic front, domestic attention will be on the release of the crucial Consumer Price Index (CPI) and Wholesale Price Index (WPI) data.
Globally, markets will closely watch for signals from Federal Reserve Chair Jerome Powell’s speech on Tuesday, alongside critical US economic indicators like Core CPI and the Unemployment Rate. Finally, the primary market will some steam blow off with only one offer open this week.
Markets On The Home Turf
The Nifty closed near 25,300, marking its second consecutive day of gains. Cipla and SBI Bank were the biggest gainers in the Nifty for the session.
Mirroring the large-cap index's momentum, the Nifty Midcap 150 and Smallcap 250 indices also advanced for the second straight day. Within the Midcap 150 index, Tata Communications gained the most. Tata Communications had an exceptional day, logging a gain of over 10%, which was its best intraday gain in 11 months.
Market breadth was strong, with all sectors closing positive except for IT and Metal. The Nifty PSU Bank index emerged as the top gaining sector for the day, recording the highest sectoral gain.
Earnings This Week
The corporate earnings season is set to gather significant pace next week, with an emphasis on results from the Information Technology (IT) and Banking & Financial Services sectors. Market attention will be particularly focused on the Nifty 50 companies scheduled to announce their results.
The week kicks off with major IT results, as Nifty 50 constituent HCL Technologies Ltd announces its earnings. Anand Rathi Wealth Ltd and Just Dial Ltd are also slated to report. The IT sector remains in focus with another Nifty 50 firm, Tech Mahindra Ltd, scheduled to report its results, alongside Persistent Systems Ltd. The Insurance space sees results from ICICI Lombard General Insurance Company Ltd and ICICI Prudential Life Insurance Company Ltd.
Banking and Life Insurance take the spotlight with two Nifty 50 companies, Axis Bank Ltd and HDFC Life Insurance Company Ltd announcing results on Wednesday. Other notable companies reporting results on the same day include Angel One Ltd, L&T Finance Ltd, and Tata Communications Ltd.
Thursday, is a packed day for Nifty 50 heavyweights. The IT services sector will see results from three major players like Infosys Ltd, LTIMindtree Ltd, and Wipro Ltd, all of which will report their performance. In the FMCG space, Nestle India Ltd is also scheduled to announce its numbers.
The Metal sector comes into focus on Friday with Nifty 50 constituent JSW Steel Ltd set to announce its earnings. Other key companies reporting on Friday include Havells India Ltd, L&T Technology Services Ltd, and Polycab India Ltd.
The earnings week concludes with a host of banking and finance results. Three major Nifty 50 banks, HDFC Bank Ltd, ICICI Bank Ltd., and IndusInd Bank Ltd will announce their results. Additionally, cement major UltraTech Cement Ltd is scheduled to report results on Saturday as well. The list is rounded out by Federal Bank Ltd, IDFC First Bank Ltd, and Yes Bank Ltd.
Key Domestic Events And Global Cues
The week brings key economic data on the domestic front. The CPI or the consumer price Index is expected to be released on Monday. While the WPI data of food, fuel manufacturing and inflation is expected on Tuesday.
Zooming out to global cues, on Tuesday, Federal Reserve Chair Jerome Powell is set to speak. As head of the Fed, which controls short term interest rates, he has more influence over the US dollar's value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy.
On Wednesday, the US's core CPI data is expected and UK's GDP is set to be released on Thursday. On the same day, the US is expecting key data like Core retail sales, Initital jobless claims and crude oil inventories.
Europe is set to release its core CPI data on Friday while the US is set to release its unemplayment rate on the same day.
Primary Market Action
After a week with blockbuster action the primary markets, the upcoming week blows some of that steam off. While big offerings like Canara Robeco IPO and Rubicon Research close this week there is one IPO that is set to open.
Midwest Ltd. IPO is a book build issue of Rs 451 crores. The issue is a combination of fresh issue of 0.23 crore shares aggregating to Rs 250 crores and offer for sale of 0.19 crore shares aggregating to Rs 201 crores, according to Chittogarh.
Opening for subscription on Oct. 15 the issue closes on Oct 17. The allotment for the Midwest IPO is expected to be finalised on Oct. 20. Midwest IPO will list on BSE, NSE with a tentative listing date fixed as Oct. 24. The price band is set at Rs 1,014 to Rs 1,065 per share.
