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Q3 results, macro-data to determine equity indices trajectory (Market Outlook)
By Rohit Vaid
Mumbai, Jan 7 (IANS) The upcoming quarterly results season, along with the release of macro-economic data points on industrial production and inflation, are expected to determine the trajectory of key equity indices next week.
According to market observers, global cues such as crude oil prices, combined with the direction of foreign fund flows and the rupee’s movement against the US dollar, will also impact investors’ risk-taking appetite.
“Earnings season for Q3 (third quarter) with IndusInd Bank and TCS (Tata Consultancy Services) release would be closely watched, as the same have to catch up with the recent PE (price-to-earnings) expansion,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The CPI (Consumer Price Index) data out on Friday would be closely watched. If much above 5 per cent, this would dampen the sentiment in the markets, especially for the banking and NBFC sectors given the fact that the GDP (2017-18) provisional estimates were already lower.”
The Q3 earnings result season will be kicked-off from next week. IT major TCS is expected to be the first bluechip firm to come out with its Q3 result on January 11, (Thursday).
“The market is trading at premium valuation supported by strong liquidity on expectation of earnings revival and positive global cues. In recent times, higher oil prices, rising inflation and the RBI’s hawkish stance are warning signs for the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Further, the market is wary of a populist budget given this is the last (full) one before the general election. In the immediate future, the market will look for more budget-related cues and progress of the Q3 results season.”
Apart from TCS, companies like Infosys, Gail, Bajaj Corp, IndusInd Bank and Shree Cement are expected to announce their quarterly results in the coming week.
“It is expected that December quarter earnings would positively surprise the street in select companies,” said D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors.
“Besides, global cues, macro-economic data, investment by foreign and domestic institutional investors (FIIs ad DIIs), the movement of rupee against the dollar and crude oil price movement will dictate the trend of the market in the week ahead.”
Apart from the Q3 results, investors will look out for the upcoming macro-economic data points such as the IIP (Index of Industrial Production) and Balance of Trade figures.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of IIP and CPI on January 12, Thursday.
On the currency front, the rupee had strengthened by 50 paise to close at 63.37 against the US dollar during the week ended on January 5.
Investment-wise, provisional figures from the stock exchanges showed that FIIs turned net buyers and purchased scrips worth Rs 1,738.44 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 1,618.27 crore, or $254.14 million, from January 1-5.
On technical levels, the underlying trend of the National Stock Exchange’s (NSE) Nifty50 remains bullish.
“Further upsides are likely once the immediate resistances of 10,566 points are taken out. Weakness could emerge if the supports of 10,520 points are broken,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
Last week, the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — rose for the fifth consecutive week.
Consequently, the 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange closed higher by 97.02 points or 0.28 per cent at 34,153.85 points.
Similarly, the Nifty50 of the NSE rose by 28.15 points or 0.26 per cent to 10,558.85 points.
(Rohit Vaid can be contacted at [email protected] )
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.