After witnessing over 1 per cent rally in both the Sensex and Nifty last week, investors will now turn their attention on June quarter earnings, macro data and stock-specific developments. Global cues and updates related to Covid-19 will also remain on their radar.
Retail inflation data will be announced today, followed by WPI inflation numbers tomorrow.
In the second week of the June quarter earnings season, more than 60 companies including the likes of HDFC Bank, Infosys, Britannia Industries, Mindtree and Wipro will announce their results. Management commentary from these companies would be keenly watched for insights into how the Covid-19 pandemic has affected various sectors.
In light of the earnings announcement, analysts expect a volatile week at the bourses and are advising investors to be cautious and stock-specific.
Meanwhile, India reported 29,108 new Covid-19 cases on Sunday, taking its overall tally to over 8.79 lakh, according to Worldometer. The death toll from the infection now stands at 23,187 in India. Some states have announced area-specific lockdown after surge in number of cases there. A rise in similar trend might spoil the mood in the markets.
One of the key events this week for the market participants will be Reliance Industries' 43rd Annual General Meeting which will be held on July 15 via a virtual mode. Analysts are expecting an update on the Saudi Aramco deal and possibly also on the reports circling about deal with the Future group. Meanwhile, the stock might trade actively in Monday's session after the conglomerate announced during the weekend that it has secured Rs 730 crore from Qualcomm for a 0.15 per cent equity stake in Jio Platforms.
Besides, specialty chemicals company Rossari Biotech will launch its Rs 500-crore IPO today, ending a four-month lull in the primary market. The price band for the IPO is Rs 423 to Rs 425 per share. At the top end, the IPO size works out to nearly Rs 500 crore and implies a post-IPO market cap of Rs 2,207 crore.
Also, the second tranche of Bharat Bond ETF will open for bidding between July 14-17, with two more new ETFs maturing in 2025 and 2031.
According to reports, senior officials of the finance ministry are expected to brief their counterparts in the PMO today regarding the Centre’s stressed revenue position and ways to augment receipts at a time when the Indian economy is on track for a contraction due to the Covid-19 pandemic.
And, now, let's have a quick look at the market snapshot for today.
The Indian markets are likely to open higher today as indicated by the SGX Nifty which was trading around 10,830 levels, up 45 points around 7:20 AM. This comes on the back of firm global cues as Asian shares got off to a strong start on Monday. Japan’s Nikkei gained 1.4 per cent and Australia's ASX200 was up 0.7 per cent. In commodities, oil prices eased in early trade. Brent crude was last trading 0.83 per cent lower at $42.88 per barrel.