Quarterly earnings, macroeconomic data, global cues among 5 key factors that may guide D-Street this week

NEW DELHI: Benchmark equity indices ended last week with marginal gains after Finance Ministry's Economic Survey pegged India's growth at 7 per cent for financial year 2019-20 and the Union Budget brought in an overhang of fresh share sales by top companies across sectors.

BSE Sensex added 118 points, or 0.30 per cent, to 39,513 for the week ended July 5, while Nifty index inched higher by 22.30 points, or 0.19 per cent, to 11,811.

The indices pared most their weekly gains on Friday after the Budget failed to enthuse investors. Sentiment got affected further after Moody’s said there are risks of India missing the 3.3 per cent fiscal deficit target for this financial year if tax revenue falls short of projections.


Going by the buzz on Dalal Street, here is a list of five factors that could chart market direction in the coming week:

June quarter earnings
Market participants will zero in on June quarter earnings, which kick off in the coming week. IT bellwethers TCS and Infosys will announce their numbers on July 9 and June 12, respectively. Companies like Deltacorp, Goa Carbon, Steel Strips Wheels, Hathway Cable and 3I Infotech will report theirs during the week.

Macroeconomic Data
Key macroeconomic data, including May industrial production (IIP) and June consumer price index (CPI) will be released on June 12. Retail inflation jumped to a seven-month high of 3.05 per cent in May, although it remained within RBI’s comfort level.

The CPI-based retail inflation for April was revised marginally upward to 2.99 per cent from an earlier estimate of 2.92 per cent, as per the data released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation.

Global cues
On the international front, market participants would watch important macroeconomic data from the US starting from Consumer Credit on July 9, followed by Redbook, Jolts on July 9, US crude oil inventory and wholesale trade on July 10, CPI, jobless claims, treasury budget, Fed Balance Sheet, money supply on July 11 and finally Baker-Hughes Rig Count on July 12.

Rupee movement
The rupee pared early losses on Friday to settle 8 paise higher at 68.42 against the US dollar as market participants reckoned fiscal deficit and gross borrowings announced in Budget were broadly in line with expectations.
Anand James, Chief Market Strategist, Geojit Financial Services, said, “Fed Chairman Jerome Powell’s upcoming semi-annual testimony should keep the rupee tentative against the US dollar in the coming week.”

FII flows
Foreign institutional investors (FII) sold shares worth over Rs 3,700 crore during the first week of July. The outflow came after a net inflow of Rs 2,595 crore in June, Rs 7919 crore in May, Rs 21,193 crore in April and Rs 33,980 crore in March. Any steep selloff by FIIs may dampen market sentiment going ahead.