India Week Ahead: Q1 Earnings, ECF Panel Meet, RBI-Bankers Meet


Mumbai: Indian markets slipped on Friday to close nearly 0.2 per cent down, Nifty slipped 30 points to marginally close above the 11550 level, 28 of the Nifty 50 stocks close in the red.

For the week Sensex closed down 2 per cent, Nifty slipped 2.2 per cent, Nifty bank lost ground by 2.8 per cent. Sun Pharma 8.5 per cent, Yes Bank 6.1 per cent, Adani Ports 3.1 per cent, Vedanta 2.4 per cent, Heromoto 2 per cent were among Nifty Gainers whereas Titan -13.8 per cent, Bajaj Finance -9.3 per cent, Bajaj Finserv -8.8 per cent, Indiabulls Housing Finance -8.4 per cent, ONGC -7.2 per cent, BPCL -6.6 per cent, Axis Bank -6.2 per cent, NTPC -6.1 per cent, Maruti -6 per cent were among Nifty losers.

For this week Nifty Resistance is seen at 11650, 11700; Support at 11500, 11420 and Bank Nifty Resistance seen at 30860, 31000; Support at 30250, 29900

Let’s take a look at some events which guide the markets.

Q1 Earnings

Infosys reported better than estimated Q1 earnings. The company’s profit stood at Rs 3,802 crore down 6.7 per cent (QoQ) and revenue at Rs 21,803 crore up 1.2 per cent (QoQ). Infosys raised FY20 revenue guidance to 8.5-10 per cent vs 7.5-9.5 per cent earlier and maintained FY20 operating margin at 21-23 per cent range. The week will see RIL, HDFC Bank posting their results apart from Tata Metaliks, DCB Bank, Federal Bank, HDFC AMC, Mindtree, Tata Elxsi, Wipro and Yes Bank.

ECF Panel Meet

The RBI constituted panel on economic capital framework headed by Bimal Jalan will meet this week and submit its report to the RBI. Reports suggest ECF panel figure to be transferred to Centre will be nearly Rs 50,000 crore. RBI has a total of Rs 9.6 lakh crore in its reserves, which is required to be maintained to meet currency fluctuations.

RBI-Bankers Meet

RBI Governor Shaktikanta Das will hold a meeting with the chief executive officers of private sector banks on Friday on credit and liquidity concerns. The meeting also expected to discuss the transmission of interest rates and non-performing assets, even as it takes up issues with regard to specific sectors such as non-banking financial companies (NBFCs) and realty.

Macro Eco Data

WPI inflation data for the month of June will be released at noon on Monday, expected to be at 2.45 per cent vs 2.35 per cent last month. Trade data for the month of June will be released on Monday evening, expected to be a deficit of $16.5 Bn. Earlier on Friday, IIP Data for the month of May came in at 3.1 per cent vs 4.3 per cent MoM and June CPI inflation came in at a 8-month high of 3.18 per cent vs 3.05 per cent

Monsoon Progress

Monsoon progress will be important factor to watch out for, as rain in the month of June was below normal and it was expected to cover up in the month of July and August. Last week IMD had said that India may receive below-average rainfall in the next two weeks with a large deficit in the soybean and cotton growing central and western regions raising concerns over the output of summer-sown crops. IMD data released on monsoon data till from June 1-July 12 was 239.2 mm which is 12 per cent below normal.

DHFL Lenders’ Meet

DHFL lenders will meet this week on Thursday. Banks will work out a restructuring plan with DHFL. DHFL has sought more time for submission of resolution plan in July 11 meet. DHFL’s total debt stands at Rs 85,000 crore with SBI & Union Bank as their lead creditors.

6th Tranche Of CPSE ETF

Government is planning to raise up to Rs 10,000 crore from the sixth tranche of CPSE ETF which would be launched on Thursday. The CPSE Exchange Traded Fund (ETF) tracks shares of 11 Central Public Sector Enterprises (CPSEs) — ONGC, NTPC, Coal India, IOC, Rural Electrification Corp, Power Finance Corp, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN. Through the earlier five tranches of the CPSE ETF, the government has already raised Rs 38,500 crore — Rs 3,000 crore from the first tranche in March 2014, Rs 6,000 crore in January 2017, Rs 2,500 crore from the third in March 2017, Rs 17,000 crore in November 2018 and Rs 10,000 crore in March 2019.