Macro Data, Earnings, Ipo Listings Likely To Influence Market

Macroeconomic data, corporate earnings, activity in the IPO market and institutional flows are likely to be in focus on Dalal Street this week, after a week that saw aggressive central bank action rattle global markets. LIC’s initial share sale to raise up to Rs 21,000 crore — India’s biggest public offer of all time — will be in the spotlight as the bidding process draws to a close.

The earnings season will continue to be on investors’ radar with blue-chip companies such as Tata Motors, Asian Paints, SBI, Bank of Baroda and Punjab National Bank slated to report their quarterly numbers.

Besides, foreign fund flows, and news updates on the Russia-Ukraine war and rising COVID infections in parts of the world will also be tracked closely.

The week that was

Indian equity benchmarks suffered their biggest weekly loss since November 2021 in the holiday-truncated four-session trading week ended May 6, plunging around four percent each. That marked their fourth weekly losses in a row.

Concerns about worsening inflation and its impact on global growth sent jitters across global markets during the week that saw major central bank including the RBI tighten pandemic-era monetary policies.

All of NSE’s sectoral gauges finished the week in the red. 

Broader markets mirrored the losses in headline indices.

Hero MotoCorp, Hindustan Unilever and Kotak Mahindra Bank were among the few blue-chip gainers.

The road ahead

“In the coming week, the market will track inflation numbers across the globe. Although the numbers will remain high, the chances of a major market reaction are low given that the impact has already been factored in,” said Vinod Nair, Head of Research at Geojit Financial Services.

He suggests sticking with spaces such as banking, IT, pharma and green energy.

Here are the key factors and events that are likely to influence Dalal Street in the week beginning May 9:

GLOBAL CUES

A slew of central bankers are due to speak during the course of the week.

DOMESTIC CUES

Separate official data on consumer inflation and factory output (Index of Industrial Production) in the country are due on Thursday, May 12.

Earnings

Investors await more of quarterly earnings reports from India Inc for cues.  Here are a few noteworthy financial results due this week:

IPO

The stock of Campus Activewear will be listed on the bourses on May 9 and that of Rainbow Children’s Medicare on May 10.

Prudent Corporate Advisory Services’ IPO to raise up to Rs 539 crore will hit the Street on Tuesday.

Two other IPOs will be launched the next day, May 11: Delhivery (Rs 5,235 crore) and Venus Pipes & Tubes (Rs 165 crore).

FII activity

Foreign fund flows will remain in focus on Dalal Street. Last week, foreign institutional investors (FIIs) net sold Indian shares to the tune of Rs 12,733.5 crore, though domestic institutional investors (DIIs) made net purchases of Rs 8,533.3 crore, according to provisional exchange data.

Corporate action