Key developments that will drive the markets this week

Let us look at the key developments this week.

July 05, 2021 7:25 IST | India Infoline News Service
The Indian stock market steadily corrected about 1.15% in the past four sessions, especially the index heavyweights as FPIs maintained their profit booking stance. The FM’s announcement of Rs.1.5 lakh crore of additional credit for small businesses, more funds for the healthcare sector and loans to tourism agencies and guides in an attempt to accelerate liquidity to the most-concerning sectors of the economy.

On Friday, equity barometers ended with decent gains with the Nifty closing above the 15,700 mark, rising 42.20 points or 0.27%. The S&P BSE Sensex, rose 166.07 points or 0.32% to 52,484.67.

Let us look at the key developments this week.

Covid cases in India

According to official data, India recorded 43,071 new coronavirus cases and 955 deaths in the last 24 hours, with the new cases, 12,456 were recorded in Kerala. While, active cases dropped to 4.85 lakh.

Meanwhile in Maharashtra, more than seven lakh COVID-19 vaccine doses, the highest in a single day so far, were administered on Saturday, as per media reports.

PM Narendra Modi will address the CoWIN Global Conclave today at 3 PM.

Expectations of Q1 earnings for the week

Large and midcap IT companies will remain in focus the next week as Q1 FY22 result season commences in the coming week.

The first quarter earnings season will formally begin with TCS, Avenue Supermart, Indocity Infotech and Delta Corps. Alliance Integrated Metaliks, Asian Hotels (North), Simplex Projects, Kwality, Shyam Metalics and Energy, Integrated Capital Services, Madhucon Projects, PTC Industries will announcing their Q1 numbers this week.

India Pesticides to debut on exchanges

India Pesticides will list its equity shares on the bourses on July 5.

PMI data to be announced on today

India Markit Services PMI and Markit Composite PMI data for June will be announced on June 5, 2021. Services activity in India contracted for the first time in 8-months in May as most states imposed lockdowns to curb the unprecedented rise in coronavirus cases in the second wave of the pandemic.

GR Infra and Clean Science Technology IPOs to open for subscription from July 7

The IPOs of GR Infraprojects and Clean Science and Technology will open on July 7 for public subscription.

GR Infra price band for the IPO has been decided at Rs828-837 per share.

Clean Science and Technology IPO price band of the Offer has been fixed at Rs880 to Rs900 per equity share.

India forex reserves rise to lifetime high

As per RBI data, India's foreign exchange reserves surged by $5.066 billion to touch a record high of $608.999 billion in the week ended June 25, 2021. In the previous week ended June 18, the reserves had declined by $4.418 billion to $603.933 billion.

Technical outlook

Domestic Markets witnessed a profit booking throughout the major part of the week as across the board long unwinding weighed in.  Nifty Index Option gamma writers took the centre stage as the benchmark index traded in a narrow band throughout the week. Bank Nifty index underperformed the Nifty index by ~0.7% with both the indices witnessing an unwinding of long positions. On the weekly charts, both the indices have formed a bearish dark cloud cover candlestick pattern, indicating a possibility of a marginal reversal.

FII and DII updates

As per provisional data, FIIs sold equities worth Rs5,416.84cr, while domestic institutional investors (DIIs) bought equities worth Rs6,418.3cr.

Wall Street ended higher after solid economic data last week

As the June jobs report showed an accelerating recovery for the U.S. Labor Market, the S&P 500 hit a record high on Friday. The S&P index rose 0.75% to 4,352.34, while the tech-heavy Nasdaq Composite climbed 0.81% at 14,639.33. The Dow Jones Industrial Average added 152.82 points to close at 34,786.35.

As per data, Nonfarm payrolls increased 850,000 in June. The jobless rate increase came even though the labor force participation rate was unchanged at 61.6%.

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