Sunil Shankar Matkarmoneycontrol.com
The market outperformed global peers last week with the benchmark indices rising 1 percent. However, US markets lost more than 1 percent and European indices plunged over 4 percent due to uncertainty over Greece. Sunday's Greek referendum vote will decide the market direction (globally) in near term and then the market will shift its focus to first quarter (FY16) earnings, said experts.
India's largest software services exporter Tata Consultancy Services (TCS) will kick off quarterly earnings season on July 9. Brokerages say the quarter could be seasonally better for IT companies but revenue surprises are less likely.
According to Nomura, in constant currency terms, Cognizant (4.2 percent Q-o-Q growth in revenue) and TCS (3.6 percent Q-o-Q growth in revenue) could lead growth, followed by HCL Technologies (2.6 percent Q-o-Q), Infosys (2.4 percent Q-o-Q).
Other companies like CMC, Bajaj Corp, Goa Carbon, 8K Miles, RS Software and Thangamayil Jewellery will also announce their April-June quarter earnings next week.
Kotak Mahindra Bank will also be in focus as Foreign Investment Promotion Board on Friday approved bank's proposal to hike FII limit to 55 percent from 49 percent and the stock will adjust for bonus issue (in the ratio of 1:1) on July 8 (ex-date).
Federal Bank, too, will start quoting ex-bonus from July 8. Shareholders will get one share for every one share held.
Other stocks that will be in focus are Petronet LNG, Arvind Remedies and Pantaloons Fashion. Arvind Remedies has a board meeting on July 11 to consider proposal for investment by a potential investor.
RBI said foreign shareholding via FIIs/ RFPIs in Petronet LNG has reached trigger limit, hence FIIs/ RFPIs will need approval from the RBI to buy further shares of the company. Pantaloons Fashion on Friday evening (after market hours) said Franklin Templeton MF bought 8.49 percent stake in company via its various schemes.
Apart from stocks, key data to watch out for would be May industrial output data scheduled to be announced on July 10 as core sector industries grew at the fastest pace in 6 months during May 2015 - at 4.4 percent Y-o-Y.
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