How do you see the next week starting 16th May for the stock markets and what factors could hold the key to markets?
Answer
Answer
The coming week will be interesting with a lot of specific triggers to watch out for. Here are a few important triggers to keep an eye on for the coming week.
a) Nifty fell by -3.83% during the last week as the global central bank driven sell-off rubbed off on the Indian frontline stocks too. The Mid cap and small cap indices fall by -6.01 and -7.98% respectively and traders can expect the smaller companies to be under pressure.
b) In weekend cues, D-Mart reported tepid profits despite strong sales and merchandise trade deficit widened to $20 billion in spite of robust exports. With VIX 23.5, short covering, even if it happens this week, would be very short lived and hard to sustain.
c) Results season almost concludes next week. Major Q4 large cap results include Bharat Forge, DLF, Indian Oil, Zydus, Interglobe, Reddy Labs, Gland, GCPL, HPCL, NTPC. Mid cap focus on Century Ply, Glaxo, MCX, Raymond, VIP, Bajaj Electric, Lupin, Chambal, IDFC.
d) IPO markets are hit and the LIC IPO lists on 17th May. With flat to weak GMP, expect flat to weak listing. LIC listing is the key to future IPOs. In addition, 3 IPOs of Paradeep Phosphates, Ethos and E-Mudhra to open on 17-May, 18-May and 20-May respectively.
e) In macro data cues, WPI inflation to be announced on 17th of May, with likely strong implications for input costs of companies. In the week, rupee fell to an all-time low of 77.6/$ during last week. RBI intervention to be measured at best.
f) In special events, the MSCI changes to result in passive rebalancing flows of $430 million into Tata Elxsi, Adani Power and AU SFB. The 18th of May will see the MPC minutes being announced with trajectory of future rates by the RBI and likely CRR hikes.
g) US markets data focus to be on Powell speak, retail sales, Redbook, IIP, API stocks, MBA mortgages, housing starts, building permits. For rest of the world, key data points include UK jobs, core PPI, CPI; EU GDP, jobs, trade; Japan trade GDP, PPI; China IIP, retail sales, house prices.