Quarterly earnings, progress of the monsoon to dictate the sentiments in the coming week

Weekly Market Quote - Vijay Singhania, Founder-Director, Trade Smart Online, a leading discount brokerage firm

Quarterly earnings, progress of the monsoon and trend in the global markets will dictate the sentiments in the coming week. Besides this, any further developments on political front for the passage of the GST bill will also remain in focus. Initially on Monday, markets will react to the outcome of the crucial US nonfarm payroll data for June 2016 announced last Friday.

With the start of the quarterly earnings season for June 2016 kick starting from next week, focus will shift to quarterly earnings and management commentary. IndusInd Bank is scheduled to announce its Q1 June 2016 earnings on Monday followed by Infosys Technology, which is scheduled to announce its Q1 June 2016 results on Friday.

Apart from quarterly earnings, the government will announce key macroeconomic data in the coming week. On Tuesday, after market hours, the government will announce data on industrial production for May 2016. India's industrial production (IIP) contracted by 0.8% in April 2016. On the same day, the inflation based on the consumer price index (CPI) for June 2016 is scheduled to be released by the government. CPI inflation increased to 21-months high of 5.76% in May 2016, recording rise for second straight month. Meanwhile, inflation based on wholesale price index (WPI) for the month of June 2016 is scheduled to be released by the government on Thursday.

On the global front, the Bank of England (BoE) is expected to cut rates from an already record low of 0.5% when it meets on Thursday in the wake of sluggish UK economic growth. BoE governor Mark Carney had earlier hinted that the central bank is likely to cut interest rates to combat a post-Brexit vote slowdown.

Source : Equity Bulls

Keywords