Markets Next Week: Key Events To Watch Out For

Due to a combination of global and domestic signals, the Indian market remained under pressure for the second week in a row. Last week, the BSE Sensex sank 388.96 points (-0.73%) to close at 52,586.84, while the Nifty50 dropped 93.05 points (-0.58%) to finish at 15,763.

The rangebound trade is expected to continue in the coming week, according to experts. They predict the banking sector and global cues will be crucial for any further directional moves, while earnings season, car sales data, and PMI numbers will likely drive stock-specific swings.

The market will react mostly to July vehicle sales figures and India Inc's Q1 FY22 profits - UPL, Britannia Industries, and Bandhan Bank - which were released after market hours on Friday.

Key Events To Watch Out For Next Week

Quarterly Earnings

In the following week, well-known companies such as HDFC, Bharti Airtel, State Bank of India, Titan Company, Dabur, M&M, Cipla, GAIL India, Adani Ports, Hindalco Industries, and Divis Labs will release their results.

IPO

Four firms - Devyani International, Windlas Biotech, Exxaro Tiles, and Krsnaa Diagnostics - will launch their initial public offerings (IPOs) next week, keeping the primary market buzzing. These companies' initial public offerings will take place between August 4 and 6 in order to collect a total of Rs 3,614 crore.

Devyani International, the operator of KFC and Pizza Hut, is the largest IPO among them, with a valuation of Rs 1,838 crore.

RBI Policy

One of the most important events next week will be the Monetary Policy Committee's (MPC) decision on interest rates during its three-day meeting on August 4-6, 2021.

The majority of experts predict the MPC to keep interest rates unchanged, but the commentary on economic growth and inflation trends, as well as measures for the most impacted sectors (if any), will be closely scrutinised.

FII Flow

For the fourth month in a row, foreign institutional investors were net sellers of Indian shares, unloading Rs 23,193.39 crore, the most since March 2020.

They sold Rs 10,825 crore worth of shares last week, nearly double the amount sold the week before. This is a warning indication.

Coronavirus cases

According to Union Health Ministry figures published on Sunday, India recorded a single-day increase of 41,831 new COVID-19 cases, bringing the total to 3,16,55,824, and the cumulative vaccine doses delivered in the country has surpassed 47 crore.

The death toll has risen to 4,24,351 people, with 541 people dying per day.

Other Important Business News

Insurance

The government has approved an amendment to the General Insurance Business (Nationalisation) Act, 1972, which will allow one state-run general insurer to be privatised. National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company Limited are the four state-owned general insurance businesses.

Equities

In the first four months of the current fiscal, equity investors added more than Rs 31 lakh crore (Rs 31,18,934.36 crore) to their portfolios, aided by an overall strong market attitude.

IBBI

The Centre has recommended that insolvency practitioners who form a nexus with corporations facing bankruptcy proceedings be prosecuted, thereby delaying the resolution process.

The Insolvency and Bankruptcy Board of India (IBBI), India's bankruptcy regulator, has toughened disciplinary procedures for insolvency professionals (IPs), imposing harsh penalties for violations of the code of conduct, with erring professionals potentially losing their licence to practise.