Dalal Street Update: Key Factors that will Keep Traders Busy in the Upcoming Week
Despite the sharp rise in the number of COVID-19 cases in India, the BSE Sensex and Nifty50 gained 3 per cent and 2.7 per cent respectively by the end of the previous week, i.e. July 24. The gain can be primarily attributed to banking & financials, IT, Infra and Auto stocks. At present, the market is trading ahead of fundamentals. The market is currently above the pre-COVID level. It may be high due to performance of a few sets of stocks with high weightage says Vinod Nair – Head of Research at Geojit Financial Services. He further advises to be cautious and place assets only in safe categories and sectors.
Moreover, the expiry of July month contracts combined with the on-going earning season is expected to keep the volatility of the market high – according to Ajit Mishra VP Research at Religare Broking. Here we dive into the sectors, and also some of the critical factors that would keep the traders busy this coming week:
Earnings
Around 560 companies are about to release their quarterly earning scorecards in the last week of July. This includes March quarterly earnings as well. Tech Mahindra, Reliance Industries, Bharti Airtel, Kotak Mahindra Bank, HDFC Bank, Dr Reddy's Laboratory, Nestle India will be critical earnings to watch out. A host of other companies will also be releasing quarterly earnings which include - IDBI Bank, IDFC First Bank, NIIT Technologies, RBL Bank, Ultratech Cement, Dabur India, Havells India, among many others.
Reliance Industries
The most crucial factor to watch out for this week would be Reliance industries. They would be declaring its June quarterly earnings on July 30. Reliance Industries became net-dept-free well ahead of its March 2021 target, with 16 per cent gain in the past week. The Telecom segment within Reliance Industries is the crucial segment to watch out for brokerages expect average revenue per user at around Rs 135-137 per month. On the refining front, Reliance Industries is expected to report GRM at $9.0 per barrel helped by both inventory gain and discounts offered to Indian refineries at the beginning of the quarter.
Automobile Sector
After the re-opening of the economy, there has been improvement in the sales of tractor and two-wheeler segment, and to some extent, in passenger vehicles as well. Escorts, Bajaj Auto, Hero MotoCorp, TVS Motor, M&M, Tata Motors, Eicher Motors, and Ashok Leyland are some of the auto stocks to look out for.
Mindspace REIT IPO
Mindspace Business Parks REIT has opened its Rs 4,500 Crore initial public offering for subscriptions today. The price band has been fixed at Rs 274-275 per square for public issue. Mindspace has already raised Rs 2,643.74 Crores from strategic, as well as anchor investors. The value raised is 58.74 per cent of the total size of Rs 4,500 Crores. The last day of the subscription is July 29.
Yes Bank to Share FPO Listing
Shares issued in the Follow-on-Public Offer (FPO) by Yes Bank are all set to be released today. Yes Bank raised a total of Rs 14,270 Crores through its FPO. The stock price of Yes Bank closed at Rs 13.65 on July 24, while the final issue price has been fixed at Rs 12 per share.
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