Last week, the benchmark indices in the Indian markets dropped nearly 3 per cent each on weak global cues, historically low GDP numbers, and geo-political concerns. For this week, investors are likely to switch focus to stock-specific approach. Although, they would continue to track development around India-China tensions, US stimulus announcement, and the Covid-19 updates.
Market participants would also keenly follow the case of extending the loan moratorium. The Supreme Court will hold the next hearing on the matter on September 10 and banks will react to any verdict that might come. Besides, investors would also watch out for July industrial and manufacturing production data scheduled to release on Friday after market hours.
India and China are engaged in talks through both diplomatic and military channels to ease the tension at the border. Any further escalation will be a big negative for the markets.
On the Covid-19 front, India's tally of cases went past 42 lakh with a record 91,723 people being infected in a day, according to Worldometer. The death toll climbed to 71,687. With this, India is now the leading country with the highest number of daily cases ahead of both US and Brazil.
Meanwhile, the June quarter earnings season will continue to roll in with about 341 companies, including BHEL, IRCTC, and Info Edge set to release their quarterly earnings this week.
Apart from these, market participants will also keep an eye on the Rupee's trajectory, foreign fund flow, and oil price movement. FIIs were net sellers last week to the tune of Rs 3,800 crore after several weeks of consistent buying.
In the primary market, two IPOs open for subscription this week.
IT company Happiest Minds Technologies will open its Rs 702-crore IPO on September 7 and close on September 9. The price band of the issue has been fixed at Rs 165-166 per share.
Omnichannel cloud communication service provider Route Mobile's Rs 600 crore IPO will hit the primary market on September 9, the price band for which has been fixed at Rs 345-350.
And now let's quickly look at the trade setup for today
Asian shares were largely trading higher on Monday, with Australia's ASX 200 and South Korea's Kospi up half a per cent. Meanwhile, Hong Kong's Hang Seng gained 0.17 per cent and Japan's Nikkei slipped 0.2 per cent. The US markets had also closed lower on Friday.
As for the SGX Nifty, it was trading 22 points lower at around 11,340 levels at 7:30 am, signaling a flat to lower start for the Indian markets today.
Vodafone Idea is set to trade actively after the company's board approved fund raising of up to Rs 25,000 crore. The company has also said it will make a strategic announcement today.
Moreover, on Friday, Moody’s had downgraded the long-term local and foreign currency deposit ratings of four public sector banks — Bank of Baroda, Bank of India, Canara Bank, and Union Bank of India. The stocks of these respective banks will react today.