Moneycontrol
Last Updated : Aug 13, 2018 07:05 AM IST | Source: Moneycontrol.com

A morning walk down Dalal Street: Earnings, CPI inflation key to watch

Back home, corporate earnings will be in focus. As we enter the final week of June quarter earnings season, nearly 1,800 companies will declare their quarterly earnings. Most of these will be out in the first two sessions of the week itself.

Moneycontrol News @moneycontrolcom

Another week of historic highs for Indian markets. Benchmark indices rose nearly 1 percent for the week ended 10 August but the S&P BSE Sensex failed to close above 38,000 while Nifty closed below 11500 levels.

The rally this week will be driven by any developments around trade war front, macroeconomic data, FIIs inflows as well as corporate earnings.

On Friday, US markets ended lower as the deepening economic crisis in Turkey dragged on bank shares and triggered a move out of riskier assets. A slump in the Turkish lira worsened after US President Donald Trump doubled tariffs on steel and aluminum imported from the country.

Investors fled to safe-haven assets, pushing the dollar higher and weighing on US bond yields, as reported by Reuters.

Back home on the macro front, consumer price index (CPI) inflation will be released on Monday while Wholesale price index (WPI) Inflation and trade data for July will be announced on Tuesday.

A positive takeaway for investors is that foreign investors have pumped in over Rs 8,500 crore into the Indian capital markets in the last eight trading sessions on improvement in crude oil prices, stabilising rupee and better corporate earnings.

According to the latest depository data, foreign portfolio investors (FPIs) pumped in a net sum of Rs 2,373 crore into equities during August 1-10 and a net amount of Rs 6,208 crore into the debt market, taking the total to Rs 8,581 crore (USD 1.2 billion).

Big News:

Back home, corporate earnings will be in focus. As we enter the final week of June quarter earnings season, nearly 1,800 companies will declare their quarterly earnings. Most of these will be out in the first two sessions of the week itself.

On Monday, nearly 700 companies will report their results for the quarter ended June which include names like Ashoka Buildcon, AstraZeneca Pharma, Cochin Shipyard, Dewan Housing Finance, GATI Ltd, Jai Corp, Jain Irrigations, Oil India, Tata Chemicals, Tata Steel, and Videocon Industries Ltd among others.

Ashok Buildcon: PAT likely to rise by 15% YoY to Rs 71 crore

Tata Chemicals: PAT likely to rise by 6% YoY to Rs 173 crore

Tata Steel: PAT likely to rise by 74% YoY to Rs 2682 crore

Oil India: PAT likely to grow by 135% YoY to Rs 1061 crore

Technical View:

Nifty formed a bearish candle for the 2nd consecutive day in a row

Nifty failed to hit 11500 levels and closed below 11450 levels

Three levels: 11350, 11478, 11500

Max Call OI: 11500, 11600

Max Put OI: 11000, 11300

Stocks in news:

Coal India: Q1 consolidated profit up 61.1 percent at Rs 3,786.4 crore versus Rs 2,350.8 crore; revenue up 26.6 percent at Rs 24,260.9 crore versus Rs 19,161.7 crore (YoY)

Power Mech: Q1 profit up 42.5 percent at Rs 30.5 crore versus Rs 21.4 crore; revenue up 28.9 percent at Rs 461.9 crore versus Rs 358.4 crore (YoY).

NBCC: Q1 consolidated profit up 23.9 percent at Rs 73.2 crore versus Rs 59.1 crore; revenue up 19.1 percent at Rs 1,844 crore versus Rs 1,548.9 crore (YoY).

Technical Recommendations:

We spoke to Chartviewindia.in and here’s what they have to recommend:

Mahindra & Mahindra: Buy| Target: Rs 1020| Stop Loss: Rs 927| Return 8%

Bharat Petroleum: Buy| Target: Rs 429| Stop Loss: Rs 380| Return 7%

Asian Paints: Buy| Target: Rs 1490| Stop Loss: Rs 1390| Return 5%

Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Aug 13, 2018 07:05 am
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