How the Week Will be Laid Out!
All You Need to Know Going into Trade on August 5
How will the Markets develop?
Overview
The Indian markets on Monday will reflect on the past week's performance while looking forward to key data points scheduled for release. The first quarter earnings season is nearing its end, and the Reserve Bank of India (RBI) will announce key lending rates following the Monetary Policy Committee (MPC) meeting.
Eye on Wall Street Close
On Friday, the US stock market experienced a selloff, impacting global sentiment.
Indian Market Recap
India's benchmark equity indices ended a five-session gaining streak with a significant drop on Friday. The NSE Nifty 50 fell by 293.20 points (1.17%) to close at 24,717.70, and the S&P BSE Sensex dropped by 885.60 points (1.08%) to close at 80,981. This marked the end of an eight-week winning streak.
Foreign portfolio investors turned net sellers, offloading equities worth Rs 3,310 crore, while domestic investors became net buyers, purchasing equities worth Rs 2,965.9 crore. The Indian rupee depreciated by 3 paise, ending at a record low of Rs 83.75 against the US dollar.
Earnings Post Market Hours
Britannia Industries Q1 FY25 Highlights (Consolidated, YoY):
- Revenue: ₹4,250.3 crore (up 6% YoY)
- Ebitda: ₹753.66 crore (up 9% YoY)
- Margin: 17.7%
- Net Profit: ₹505 crore (up 11% YoY)
Earnings in Focus on Monday
- Avanti Feeds
- BEML
- Bharti Airtel
- Bharti Hexacom
- BLS International
- Brigade Enterprises
- Century Plyboards
- Deepak Nitrite
- Devani International
- GSFC
- H G Infra Engineering
- Honeywell Automation
- Marico
- Motherson Sumi Wiring India
- Oil and Natural Gas Corp
- Orient Cement
- Sandhur Manganese and Iron Ores
- Schneider Electric Infrastructure
- Syrma SGS Technology
- Tata Chemicals
IPO Offerings
- Ceigall India: The public issue was subscribed 1.23 times on day 2.
- Ola Electric Mobility: The public issue was subscribed 0.35 times on day 1.
Insider Trades
- Bajaj Finserv: Promoter Bachhraj & Company bought 2.25 lakh shares on July 30. Aryaman Family Trust, Nirvaan Family Trust, and Sunaina Kejriwal sold 75,000 shares each on the same day.
Trading Tweaks
- Ex/Record Dividend: Hercules Hoists, Alembic, Berger Paints, Britannia Industries, Chambal Fertilizers & Chemicals, Greenply Industries, Linde India.
- Ex/Record AGM: Godrej Industries.
Money Market Update
The Indian rupee closed at a record low of Rs 83.75 against the US dollar on Friday, influenced by a 1% crash in stock indices and weak US economic data.
Key Events to Watch on Monday
India:
- August 5: Services PMI
- August 6: MPC meeting begins
- August 8: MPC policy rate outcome
- August 9: Forex reserves, monthly MIF flows (tentative)
Global:
US (August 5): Composite, non-manufacturing PMI
US (August 6): Trade data
US (August 7): API weekly crude oil stock, gasoline inventories
US (August 8): Initial jobless claims
US (August 9): Fed's balance sheet
UK (August 5): Composite and services PMI
Eurozone (August 5): PPI, composite and services PMI
Eurozone (August 6): Retail sales
China (August 5): Caixin services PMI
China (August 7): Trade data, forex reserves
China (August 9): PPI, CPI
Japan (August 5): Services PMI, BoJ issues minutes of June's policy meeting
Global Earnings:
- August 6: Uber, Siemens
- August 7: Disney, Softbank, Novo Nordisk, Sony
Q1 Earnings:
- Nifty (August 5): ONGC, Bharti Airtel
Other (August 5):
- Deepak Nitrile, OSFC, Tata Chemicals
- Orient Cement, Mangalam Cement, Honeywell
- Avanti Feeds, Protean eGov
- Bharti Hexacom, Triveni Turbine, Vijaya Diagnostics
- Syrma SGS Technology, BEML, BLS E-Services IPO
- V-Mart Retail, Keystone Realtors, Updater Services
- Schneider Electric Infrastructure, Century Plyboards, SPARC
- HCC, Paras Defence, Brigade Enterprises
Conclusion
The Indian markets are poised for a volatile start to the week, influenced by global cues, the ongoing earnings season, and the upcoming RBI policy announcement. Investors should closely monitor the MPC meeting outcomes and key economic data releases, both domestically and internationally, for further market direction. The depreciation of the Indian rupee and the recent selloff by foreign investors could add to the market's volatility.