There may be a decline in the stock market this week. The market will keep an eye on the second quarter results of companies, domestic economic data, global economic data, FII-DII flows and upcoming IPO.
Such factors which will decide the movement of the market this week…
1. Second quarter results of companies
This week the focus will be on the second quarter (July-September) results of the companies. The results of more than 400 companies will come in the week starting from October 21. These include big names like ICICI Bank, Hindustan Unilever, ITC, Ultra Tech Cement, Bajaj Finance, Bajaj Finserv, Bharat Petroleum Corporation, Coal India and JSW Steel.
ACC, Bank of Baroda, Bajaj Housing Finance, InterGlobe Aviation, One 97 Communications (Paytm), Zomato, ICICI Prudential Life Insurance, SBI Life Insurance, JSW Energy, TVS Motor Company, Godrej Properties, Bharat Electronics, Hindustan Petroleum Corporation, IDBI Bank Companies like , Yes Bank and IDFC First Bank are also going to release quarterly results this week.
2. Global Economic Data
Globally, investors will focus on weekly jobs, new home sales and durable goods orders data from the US. At the same time, PMI numbers of manufacturing and services from many countries will also be monitored in October. Apart from this, general elections in Japan will also be held in the coming weekend on October 27.
3. Domestic Economic Data
The market will keep an eye on the monetary policy meeting minutes on October 23. On October 9, the MPC had decided to keep the interest rates intact. However, the committee changed its stance to 'neutral'. Additionally, HSBC Manufacturing and Services PMI flash data for October will be released on October 24.
Manufacturing PMI declined to 56.5 in September from 57.5 in August, while services PMI stood at 57.7 in September, compared to 60.9 last month. Data on foreign exchange reserves for the week ending October 18 will also be released next week on October 25.
4. FII-DII Flow
The market will also keep an eye on the activities of Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII). FIIs have sold heavily in India due to valuation concerns. October saw the largest monthly outflow so far and FIIs are shifting money to China.
However, steady fund flows from DIIs have compensated for the selling by FIIs. FIIs remained net sellers throughout October. They sold shares worth Rs 80,218 crore in the cash segment, while DIIs bought shares worth Rs 74,176 crore in the same period.
5. Initial Public Offering (IPO)
9 new IPOs are going to open in the week starting from 21st October. Of these, 4 are from the mainboard segment. Apart from this, there will be an opportunity to invest money in an already open IPO in the new week also. Shares of 3 companies will make their debut in the new week. Hyundai Motor India is also included in these companies.
The Rs 4,321 crore Vaari Energies IPO and the Rs 260 crore public issue of Deepak Builders & Engineers will open for subscription on October 21. Godavari Biorefineries' Rs 555 crore IPO will open on October 23 and Afcons Infrastructure will launch its Rs 5,430 crore IPO on October 25.
Five companies in the SME segment – Premium Plast, Danish Power, United Heat Transfer, OBSC Perfection and Usha Financial Services will launch their IPOs this week. Whereas Freshra Agro Exports will close its IPO on October 21. Shares of Hyundai Motor India will be listed on BSE-NSE in the mainboard segment on October 22. Lakshya Powertech shares will be listed on NSE-SME on October 23. Freshra Agro Exports will be listed on NSE-SME on October 24.
Last week there was a fall of 157 points in Sensex.
In the entire last trading week, the Sensex had fallen by 157 points (0.19%). On the last trading day i.e. Friday (October 18), the Sensex closed at 81,224 with a gain of 218 points. Nifty also rose by 104 points, it closed at the level of 24,854.
Graphics Source: VaskarAssets
