Ahead this week: CPI inflation, industrial production and manufacturing production data
Main factors for the week Ahead
Flow for FII:
Foreign institutional investors kept up their purchasing blitz last week. After purchasing shares for Rs 1,997.70 in March and Rs 5,711.80 in April, they purchased shares for Rs 5,527 crore between May 2 and 5. According to economists, the FII sentiment was aided by favourable domestic macroeconomic indicators such as the manufacturing PMI and the GST collections in April. On the other side, shares worth Rs 2,735 crore were sold by domestic institutional investors, with Friday seeing the majority of the sales.
CPI inflation
The figures for the month of April’s All India Consumer Price Index (CPI) will be made public by the Ministry of Statistics and Programme Implementation (MoSPI) on May 12. Analysts predict that this will be the lowest print in more than 16 months and the first sub-5 percent print since November 2021.
Corporate Income
In the week ending May 14, more than 300 firms are scheduled to release their quarterly results as we move into the fifth week of earnings season.
L&T, Asian Paints, Tata Motors, Pidilite, Godrej Consumer Products, Dr. Reddy’s, Cipla, UPL, HPCL, Avenue Supermarts, and Lupin would be the most prominent names among the large-cap names. It will also be important to keep an eye on Gujarat Gas, Raymond, Dr. Lal Pathlabs, Westlife Foodworld, Balrampur Chini Mills, Siemens, and Nazara Technologies
April India CPI (YoY)
The CPI for India decreased from 6.44 percent in February to 5.66 percent last month. The inflation reading, which was 5.66 percent in December 2021, is the lowest in 15 months. Additionally, it generally agrees with mainstream projections.
Industrial Production in India (YoY) in March
India’s industrial output increased 5.6% annually in February compared to a year earlier, thanks to increases in manufacturing and energy production. It was 5.5 percent in January. The February IIP growth result of 5.6 percent was broadly in line with consensus forecasts of 5.8 percent.
Weekly earnings forecast
CG Power, Exide, Pidilite, Castrol, Shipping Corporation of India, Dr. Reddy’s, Escorts, Novartis, Sanofi, Asian Paints, Tata Motors, and Cholamandalam Finance Holdings are among the Indian firms that will report Q4FY23 results in the next week.
For Monday’s session must keep in mind
Watch Wall Street
After good US jobs statistics and a recovery in regional banking shares, Wall Street equities rose on Friday, breaking a four-day losing run. To 33,674, the Dow Jones Industrial Average increased by 1.7%. The tech-heavy Nasdaq Composite Index increased 2.3% to 12,235 while the broad-based S&P 500 increased 1.9% to 4,136.
The stock market in Europe
The performance of European equities on Friday was strong, helped by a rise in HSBC stock and gains from energy companies that followed a recovery in oil prices, but it marked a drop for a week that was jam-packed with important central bank meetings and significant earnings.
The oil and gas sector index led gains, jumping 2.7% as crude prices firmed, while the pan-European STOXX 600 index finished 1.1% higher.
Fii and Dii data
On May 5, according to preliminary data from the National Stock Exchange, domestic institutional investors (DII) sold shares worth Rs 2,198.77 crore, while foreign institutional investors (FII) purchased shares worth Rs 777.68 crore.