Indian shares ended lower in the week gone by amid mixed global and domestic cues. This was the second consecutive week of losses for Sensex and Nifty. The Sensex fell 388.96 points, or 0.73 percent to end at 52,586.84, while the Nifty50 ended 93.05 points, or 0.58 percent lower at 15,763.05 levels.

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The broader markets, however, outperformed the frontliners as both midcap and smallcap indices ended with gains of 0.8 percent and 1.1 percent.

Sustained selling by foreign institutional investors (FIIs) amid worries over the Delta variant of coronavirus and weak global cues dragged the market lower. Meanwhile, a dovish policy from the US Federal Reserve lent support to the market.

Selling was seen in banks, financials, auto, FMCG and energy sectors, while IT and metal stocks witnessed most buying during last week.

Read here:

Nifty50 logs second weekly loss as banks weigh on D-Street; metals shine

Going ahead, June quarter earnings, Reserve Bank of India’s (RBI) monetary policy outcome, auto sales data and the PMI numbers will continue to drive stock-specific movements on D-Street.

“Markets have been consolidating in a range i.e. 15,450-15,900 for the last two months and the trend may endure until we see alignment between Nifty and the banking index. While index majors from other sectors are helping the index to hold at higher levels, participation of the banking pack is critical for any sustainable directional move,” said Ajit Mishra, VP Research. Religare Broking.

Meanwhile, we reiterate our view to focus on themes that are currently playing out well and select stocks accordingly, he added.

On the technical front, the Nifty has formed a lower top formation which is broadly negative, but at the same time, the Nifty is hovering near 20 and 50 day SMA with modest volume activity. Analysts are of the view that Nifty may consolidate in the range of 15,600-15,900 levels due to non-directional activity.

“Nifty50 index continues to trade in a tight consolidation range. Support and resistances are now placed at 15,600 and 15,900 levels. Even though Nifty has not broken the support, but it is trading below the trendline drawn from April 2021 lows, which is also bearish. Traders are advised to maintain a neutral bias as long as Nifty does not break below 15,550. A break below the support is likely to trigger a short-term correction,” said Nirali Shah, Head of equity research, Samco Securities.

Here are key factors that investors will watch out for next week:

Earnings

HDFC, State Bank of India, Bharti Airtel, M&M, Titan Company, Dabur, Cipla, GAIL India, Adani Ports & SEZ, Bank of Baroda, HPCL, Punjab National Bank, Zee Entertainment Enterprises, Adani Enterprises are some prominent names that will announce their Q1 earnings next week.

Others include Emami, RBL Bank, Varun Beverages, Bank of India, Barbeque-Nation Hospitality, Tata Consumer Products, Adani Green Energy, Apollo Tyres, Adani Total Gas, Adani Power, Escorts, Gujarat Gas, Indiabulls Housing Finance, Bosch, Godrej Properties, Castrol India, Indian Overseas Bank, Godrej Consumer Products, Tata Communications.

Kalpataru Power Transmission, Inox Leisure, Ipca Laboratories, REC, Tata Chemicals, Thermax, Alkem Laboratories, AU Small Finance Bank, Bharat Electronics, BEML, Berger Paints India, Indigo Paints, JK Tyre & Industries, NALCO, Sona BLW Precision Forgings, Tata Power, Ujjivan Small Finance Bank, Voltas, Amber Enterprises India, DCB Bank, etc, will also announce their June quarter results in the coming week.

IPO

Four companies — Devyani International, Windlas Biotech, Exxaro Tiles and Krsnaa Diagnostics will launch their initial public offerings (IPO) for public subscription during August 4-6.

The KFC and Pizza Hut operator Devyani International plans to raise Rs 1,838 crore from the issue and the price band is fixed at Rs 86-90 per share.

Krsnaa Diagnostics plans to raise Rs 1,213.33 crore via public offer. The price band for the issue is Rs 933-954 per share.

Pharma company Windlas Biotech has fixed the price band for its Rs 401.54 crore IPO at Rs 448-460 per share, while vitrified tiles manufacturer Exxaro Tiles plans to raise Rs 161-crore through IPOs next week. Exxaro Tiles has fixed the price band at Rs 118-120 per share.

Listing & Allotment

Glenmark Life Sciences, the subsidiary of Glenmark Pharmaceuticals will finalise IPO share allotment on August 3 and will list on exchanges on August 6. The expected final issue price is Rs 720.

The IPO of Glenmark Life Sciences was subscribed 44.17 times during July 27-29. The offer received bids for 66.33 crore equity shares against the IPO size of 1.50 crore equity shares.

RBI Policy

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting is scheduled between August 4 and 6, 2021. The MPC is widely expected to hold interest rates but experts believe that the commentary on economic growth and inflation trajectory will be watched out for.

Auto sales numbers

Auto companies will announce their July sales data next week.

During the month of July, two-wheeler wholesale volumes are estimated to see 14 percent YoY growth and reach July 2019 levels, while CVs are likely to decline marginally by 2 percent on a two-year CAGR. LCV would come in flat on a two-year CAGR, while M&HCV would post a 6 percent CAGR decline, as per a report by domestic brokerage Motilal Oswal.

PV and tractor are the only segments to report higher volumes versus July 2019 levels.

Read here: Auto sector demand recovery sustains in July; e-2W inquiries rise

Macroeconomic data

Markit Manufacturing PMI data will be released on August 2, and Markit Services & Composite PMI numbers for July will be released on August 4.

Corporate Action:

Global cues:

United States

Markit Manufacturing PMI Final & ISM Manufacturing PMU for July, Construction Spending for June on Monday, August 2.

Total Vehicle Sales for July, Factory Orders for June on Tuesday, August 3.

MBA Mortgage Applications for week ended July 30; Markit Services & Composite PMI Final for July on Wednesday, August 4.

Initial Jobless Claims for week ended July 31 on Thursday, August 5.

Unemployment Rate & Non farm Payrolls for July; Wholesale Investories for June on Friday, August 6.

European Area

Markit Manufacturing PMI Final for July on Monday, August 2.

Markit Services & Composite PMI Final for July; Retail sales for June on Wednesday, August 4.

Construction PMI for July on Thursday, August 5.

Japan

Jibun Bank Manufacturing PMI Final for July on Monday, August 2

Jibun Bank Services & Composite PMI Final for July on Wednesday, August 4.

Household Spending for June on Friday, August 6.

China

Caixin Manufacturing PMI for July on Monday, August 2.

Caixin Services & Composite PMI for July on Wednesday, August 4.

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