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F&O expiry, June quarter earnings among top five factors which will chart market direction this coming week

More than 200 companies will announce their quarterly results during the coming week.

Updated: Jul 21, 2019, 10.31 AM IST
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The 30-share Sensex declined 1.03 per cent last week to end at 38,337.
Benchmark equity indices Sensex and NSE Nifty ended the week in the red amid profit booking by foreign investors, mixed earnings and concerns over a slowdown in the economy.

The 30-share Sensex declined 1.03 per cent for the week to end at 38,337 on July 19 against 38,736 on July 12. Likewise, 50-share Nifty declined 1.15 per cent to 11,419.

Going by the buzz on the Street, here are the five factors that are likely to chart market direction in the coming week.

June quarter results: More than 200 companies including Maruti Suzuki, Bajaj Auto, Tata Motors, HDFC Bank, Bajaj Finance, Kotak Mahindra Bank and Larsen & Toubro will announce their financial results for the quarter ended June 2019 during the coming week.

Zee Entertainment, Asian Paints, Apollo Tricoat Tubes, Can Fin Homes, Coromandel International, Mastek, Oriental Bank of Commerce, TVS Motor, United Spirits, Everest Industries, HDFC Life Insurance Company, Hindustan Unilever, Mahindra & Mahindra Financial Services and NIIT Technologies are among the other players that will report their numbers during the week

The market will also react to RIL’s June quarter earnings, which came on Friday post market hours. The oil-to-telecom behemoth posted a 6.8 per cent increase in consolidated net profit for the quarter on a year-on-year (YoY) basis.

The company's consolidated net profit (attributed to the owners of the company) rose to Rs 10,104 crore, against Rs 9,459 crore reported during the corresponding period of the previous fiscal.

FII inflows: Foreign institutional investors have offloaded shares worth nearly Rs 7,700 crore in July so far against an inflow of over Rs 30,000 crore during April-June. Any more selloff by FIIs during the week may further dampen market sentiment. The government has refused to provide any relief to overseas investors from the higher tax surcharge announced in the Union Budget.

F&O expiry: The upcoming week may witness more volatility as market participants will adjust their F&O positions as July series contracts expire on July 25.

Global cues: On the global front, market participants would watch key macroeconomic data from the US starting from Redbook, Existing Home Sales on July 23, Durable Goods Orders, Jobless Claims, Fed Balance Sheet, Money Supply on July 25 and GDP and Baker-Hughes Rig Count on July 26.

Monsoon: The slowing economy concerns were further heightened as consumer good sales in rural areas have slowed down amid delayed monsoon rains. “The major crop and agri producing belt have seen rain deficit and it is posing another concern for the economy. Along with that, we are already seeing a rise in inflation for the last few months,” said Mustafa Nadeem, CEO, Epic Research.

Cumulative rainfall stood at 15.8 per cent below normal till July 17 with weekly rainfall 19.8 per cent below normal.

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