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Sensex week ahead: Q2 earnings, stock-specific actions among top factors to watch

Firm global cues and sustained buying on select counters helped the indices hit record highs.

, ETMarkets.com|
Last Updated: Oct 15, 2017, 11.14 AM IST
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The domestic equity indices found their mojo back during the week, with the Nifty50 scaling a fresh all-time high on Friday.
The domestic equity indices found their mojo back during the week, with the Nifty50 scaling a fresh all-time high on Friday.
NEW DELHI: A week to remember for all the right reasons!

On one hand, Tata Group decided to merge its consumer mobile businesses (CMB) of Tata Teleservices Ltd (TTSL) and Tata Teleservices Maharashtra with Bharti Airtel and on the other, IndusInd Bank sealed a merger with Bharat Financial Inclusion -- a deal that was doing the rounds for long. This apart, encouraging macroeconomic data and the return of the bulls set the stage for a party on Dalal Street.

The domestic equity indices found their mojo back during the week, with the Nifty50 scaling a fresh all-time high on Friday. Firm global cues and sustained buying on select counters helped the indices hit record highs.

On Friday, the Sensex climbed 250 points to settle the session at 32,433 while the broader Nifty50 index scripted history, hitting a record peak, surpassing its previous high of 10,179 and settling at an all-time closing high of 10,167, up 71.05 points.

Let's have a look at the key events/factors that the market may react to in the coming holiday-truncated week. The domestic bourses will remain closed on Thursday, October 19 on account of Diwali Laxmi Pujan and again on October 20 on account of Diwali Balipratipada. There will be a brief session in the evening on Thursday for Muhurat trading.

Q2 earnings
Financial results of India Inc for September quarter will continue to dominate investor sentiment in the coming week. Some of the prominent names which will announce their Q2 earnings include Wipro, Bajaj Auto, Axis Bank and ACC. All these companies will release their results on Tuesday, October 17, while UltraTech Cement will announce its numbers on Wednesday, October 18, 2017.

Tech charts send out positive signals
The Nifty50 on Friday hit an all-time high and made a strong Bullish Candle on the daily chart. The index closed above its major short-term averages. Chandan Taparia of Motilal Oswal Securities said the index looks poised to start the fresh upmove after its consolidation breakout of 9,685 to 10,178 range seen in last 13 weeks. A hold above 10,150 could extend the fresh rally towards 10,300-10,400 zones, as supports shifts higher to 10,080 level.

Bharat Financial, IndusInd Bank shares
Stocks of IndusInd Bank and Bharat Financial will be on investors' radar when trading resumes on Monday after the Romesh Sobti-led IndusInd Bank sealed a merger with Bharat Financial Inclusion (BFIL) on Saturday. IndusInd Bank will offer 639 shares for every 1,000 shares of Bharat Financial in a deal that will be effective from January 1, said that bank in a stock exchange filing.

Reliance Industries in focus
RIL stocks will be in focus on Monday as the oil-to-telecom announced its Q2 results on Friday, after market hours. The company's quarterly net profit rose 12.5% year-on-year to Rs 8,109 crore as its booming refining and petrochemicals businesses reported higher sales at decade-high margins, which outweighed heavy interest and depreciation charges in its earnings that consolidated the results of telecom venture Jio for the first time.

Godrej Agrovet to debut on bourses
Godrej Agrovet, the agri-business unit of Godrej Industries Ltd, will make its stock market debut on Monday after successfully concluding the initial public offer (IPO) last week. The Rs 1,157 crore IPO was a huge hit and oversubscribed 95.41 times during 4-6 October. The shares are proposed to be listed on BSE and NSE.

Macro numbers
The government will announce inflation data based on wholesale price index (WPI) for September 2017 during market hours on Monday, 16 October 2017. WPI rose 3.24% year-on-year in August of 2017, following a 1.88% increase in the prior month. In addition, movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the truncated trading week ahead.

Global cues to be key
On the global front, talk is growing that the US President Donald Trump could really pull the United States out of the North American Free Trade Agreement (NAFTA) with Canada and Mexico. If this happens, it will have a direct impact on stocks across the globe. Chinese Industrial Production data for September 2017 will be announced on Thursday, 19 October 2017. On the same day, the Q3 GDP growth rate of China will also be declared. The Chinese economy advanced 6.9% year-on-year in the second quarter of 2017.

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