InvestorQ : What are the major cues and triggers for the stock markets in the week starting on 13 July 2020?
Tisha Malhotra made post

What are the major cues and triggers for the stock markets in the week starting on 13 July 2020?

diksha shah answered.
2 years ago

The coming week is a big week with an IPO, a FPO and the Reliance AGM coming up. Here are some of the major triggers which will impact markets during the week.

· COVID-19 tally continues to remain at elevated levels. Daily cases are above the 25,000 mark and that is an overhang even though recoveries have also been rapid.

· IIP has contracted in May 2020 at (-34.71%). Although, this is better than April, the markets will seek assurance of a bounce from June and July data.

· Yes Bank hits the FPO market to raise Rs.15,000 crore and the success of the FPO will determine the future of Yes Bank as it needs to be quickly recapitalize.

· More than 4 months after the SBI Cards IPO, the first IPO post COVID, Rossari Biotech, will hit markets on 13 July. Retail and QIP response will be the key factors.

· Markets will await the first cues from COVAXINE trials on humans which have started. Ahead of the August 15 deadline, any success would boost pharma stocks.

· Big earnings numbers during the week for the June quarter include Infosys, Britannia, Wipro, HDFC Bank, HCL Tech, Cyient and Mindtree. A good tome on IT sector.

· The 43rd AGM of India’s most valuable company is scheduled on 15 July. RIL AGM is expected to lay out a detailed plan on becoming zero debt by Mar-21.

· FIIs and DIIs remained net sellers during the week, ahead of two IPOs. Continued selling from both could be negative for markets.

· Food inflation cues will be awaited this week but trade data will be the key trigger to check if there is a bounce in economic activity.

· The Nifty will need to break above 10,800 resistance level with good volumes to pull the rally towards 11,000 levels.

· The US Inflation, retail sales, jobless claims, EU IIP, ECB Rates, China trade/IIP and Japan IIP and rates will be key global macro triggers.