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HomeLatest NewsGlobal NewsIndian markets Attracting FII buying / What next in this week -...

Indian markets Attracting FII buying / What next in this week – India 10-14 July

Indian Markets this week: Inflation, FII Buying, global cues.

Last week, S&P BSE Sensex and Nifty50 achieved historic highs. Friday losses halted the upside. Sensex gained 0.87% and Nifty 50 gained 0.74%. Know what the markets will do this week amid many domestic and worldwide happenings.
Bhosale advised investors to check global cues for vulnerabilities as various themes showed strength throughout the week.

Factors that are likely to impact movement when markets reopen this week:

Main factors for indian market the week Ahead 

US Inflation

Market players will closely watch June US inflation on July 12. The Federal Reserve needs this data before its July 26 policy meeting. Since inflation is above 2 percent, Fed Chair Jerome Powell has been hinting at more rate hikes before the end of the year.

Experts said that while June inflation may have eased from May’s 4.1 percent, the US labor market remained tight and US 10-year and 2-year treasury yields rose above 4 percent and 5 percent, respectively, suggesting that the Fed may raise rates in July.

Global Events

This week: US CPI, PPI, initial jobless claims, monthly budget statement; UK jobless claims, unemployment, industrial production, manufacturing production; China PPI, CPI, and trade balance data.

India will report CPI and wholesale inflation this week. Industrial production and trade balance will be reported.

CPI Inflation

Given rising food costs, constant oil prices, and stable core inflation, the June consumer price inflation print on July 12 is likely to remain flat compared to 4.25 percent in May. The RBI’s favored data point, core inflation, may remain flat.

Barclays predicts the RBI’s preferred core inflation gauge to remain unchanged at 5.17 percent YoY in June, compared to 5.15 percent in May.

Participants will also focus on May manufacturing production, WPI inflation, and June balance of trade on July 14.

On July 7, foreign exchange reserves and deposit and bank loan growth will be revealed.

FII Flow

FII money has driven the recent rapid surge to new market benchmark highs. Experts predict a Nifty at 20,000 in future weeks if the flow continues.

In the first week of July, FIIs bought around Rs 9,100 crore, adding to their cash market purchases of Rs 55,000 crore in the preceding two months. Domestic institutional investors net sold almost Rs 6,900 crore worth of cash category shares in the past week, taking advantage of the gain.

Corporate Earnings

IT majors will start the corporate earnings season for June FY24 next week. On July 12, Tata Consultancy Services and HCL Technologies will report, followed by Wipro on July 13.

Avenue Supermarts, Bandhan Bank, JSW Energy, Federal Bank, Angel One, and Tata Metaliks will also release data next week.

Corporate Events

Corporate actions abound this week. Hindustan Zinc dividend payment record date on July 15, Zee hearing, Nazara Technologies to discuss and consider fundraising, last day to buy Balkrishna shares industries to be eligible for dividend, Ashiana Housing to consider buyback of equity shares, last day to buy Magadh Sugar to be eligible for dividend.

HDFC stockholders receive HDFC Bank shares on July 13. Apollo Tyres, AstraZeneca Pharma, AU Small, Finance Bank, Birlasoft, Kabra Extrusiontechnik, Kirloskar Ferrous, Lupin, Polychem, REC, Safari Industries, and Ujjivan SFB will be the last day to buy for dividends. The last day to buy Aptech before the bonus issue (2:5).

Tech View

Technically, the index is likely to take a key support at 19,200 in coming weeks and the next, at 19,000, is expected to be crucial for sharp correction, while on the higher side, the hurdle is 19,400-19,500 area and if it sustains 19,500, 19,600-19,800 would be next levels to focus on, experts said.

F&O Cue

Experts said the Option data showed that 19,000 is considered to be important support for the Nifty50 in a downturn, while the biggest pain is at 19,400 strike where we have maximum Call and Put open interest.

The maximum weekly Call open interest was 19,400, followed by 20,000 and 19,900 strikes, with meaningful Call writing at 19,400, 19,900, and 20,000 strikes. The maximum weekly Put open interest was 19,400, followed by 19,300 and 19,000 strikes, with meaningful Put writing at 18,800, 19,000, and 19,300 strikes.

Bond Yields

Reuters reported that Indian government bond rates rose for a third week, following a continuous rise in US counterparts, breaking key levels on anticipation of more Fed rate hikes.

After closing at 7.1464% on Thursday, the benchmark 7.26% 2033 bond yield reached 7.1609%, its highest level since April 20. The report indicated the yield reached 7.1755% during the session. After two weeks of four-bps increases, the yield jumped four bps this week.

GOLD

Gold futures rose 1% Friday on dollar weakening. August gold futures rose 0.67% to Rs 58,792, while September silver futures rose 1.43% to Rs 71,333.

Crude oil

Dollar price fluctuation will affect crude oil prices this week. The Associated Press reported that benchmark US crude oil for August delivery increased $2.06 to $73.86 a barrel on Friday, while Brent crude for September delivery rose $1.95 to $78.47. August wholesale gasoline jumped 5 cents to $2.59. August heating oil jumped 8 cents to $2.56 a gallon. August natural gas declined 3 cents to $2.58 per 1,000 cubic feet.

UPCOMING IPO

On July 12, Utkarsh Small Finance Bank will launch its Rs 500-crore IPO at Rs 23-25 per share. The IPO closes July 14.

On July 10, electronics manufacturing services and solutions supplier Cyient DLM will float, and Kolkata-based Senco Gold will list on July 14.

On July 10, Kaka Industries and Ahasolar Technologies‘ SME public issues will open for bidding. Drone Destination and AccelerateBS India, which started this week, will conclude on July 13 and July 11, respectively, while Service Care will make its first public issue on July 14.

Alphalogic Industries, Synoptics Technologies, Tridhya Tech, and Global Pet Industries will also list next week.

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