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Market Ahead, October 14: Top factors that could guide markets this week

September quarter earnings, macro-data print, trade truce between the US and China, minutes of the RBI's October MPC review meeting, and other global cues are expected to steer markets during the week

BS Web Team  |  New Delhi 

September quarter earnings, macro-data print, trade truce between the US and China, minutes of the RBI's October MPC review meeting, and other global cues are expected to steer during the week.

Hindustan Unilever, SBI Life, Wipro, Mindtree, TVS Motors, Reliance Industries and HDFC Bank are among the 96 companies that are lined up to declare their Q2 earnings this week.

In the primary market, Indian Railway Catering and Tourism Corporation will get listed at the bourses today. Remember, it's IPO received the highest ever subscription of 112 times among PSUs.

That apart, investors would eye consumer and wholesale inflation print for the month of September, both to be released later today, to gauge the health of the economy. Besides, market participants could also react to weak industrial growth data released on Friday, post-market hours. The Index of Industrial Production (IIP) contracted by 1.1 per cent, a first since June 2017, and was the lowest in nearly 7 years. Also, investors would await India’s balance of trade number for the month of September, slated to be released on October 15.

Starting today, the Finance Ministry will begin the budgetary exercise for the next fiscal year. As a part of this, the Finance Minister will today meet chiefs of Public Sector Banks (PSBs) to review fund flow to stressed NBFC and MSME sectors.

Furthermore, minutes of the RBI's latest monetary policy meeting would be released on October 18th, which would be on investor's radar to understand the RBI's view on the economy.

That apart, global cues, oil price movement, the rupee's value against the dollar, stock-specific development and fund flow by FPIs and DIIs will guide the market trajectory.

On Friday, the S&P BSE Sensex added 247 points or 0.65 per cent to end at 38,127 levels, while the Nifty50 ended at 11,305 levels, up 70 points or 0.63 per cent.

For today, trends on SGX Nifty suggest a negative start to the domestic indices. At 7:20 am, the Singaporean Exchange for Nifty Futures was trading 23 points lower.

In the global markets, Asian shares pushed higher on Monday as signs of progress in the Sino-US trade standoff whetted risk appetites.

Sentiment has been boosted after U.S. President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.5%, Australia's main index gained 0.9% and South Korea's Kospi firmed 1.3%.

On Wall Street, the Dow Jones, the S&P500 and the Nasdaq Composite all settled over a per cent higher during the overnight trade on Friday.

In the commodities market, oil prices were little changed on Monday, holding onto 2% gains from Friday amid renewed geopolitical tensions in the Middle East. The prices were hovering over $60 per barrel mark in the early trade.

In the currency market, the level of rupee will be watched as global currencies strengthened due to global factors. While dollar strengthened after the United States and China reached 'Phase 1' in trade deal, the British pound surged on Friday on optimism about orderly Brexit. A last-minute meeting of British leaders is expected on Monday to discuss Brexit, ahead of EU Summit, scheduled for Thursday and Friday.

First Published: Mon, October 14 2019. 08:14 IST