As the earnings season draws to a close on Dalal Street, analysts say high volatility may persist in the run up to the expiry of monthly derivatives (futures & options) contracts due on Thursday, May 26. Besides, global cues will remain at centre stage after a week that saw wild swings in the market as investors fretted over aggressive hikes in interest rates, worsening inflation and concerns about receding growth.
News updates on the Russia-Ukraine war front and the pandemic situation in China will also be tracked closely.
The week that was
Last week, both Sensex and Nifty50 rose around three percent each — their first weekly gain in more than a month.
Barring IT, all of the sectors strengthened, helping Dalal Street endure wild swings in its global peers as investors fretted over aggressive hikes in pandemic-era interest rates and concerns about receding global growth.
The road ahead
One can expect high choppiness to continue on account of the scheduled monthly F&O expiry, according to Ajit Mishra, VP Research at Religare Broking.
Besides, monsoon-related updates will be in focus, along with the performance of global markets, especially the US, China’s COVID updates and news on the Russia-Ukraine front will remain in the spotlight, he said.
"The Nifty50 is trading closer to the upper band of the 15,700-16,400 range, where it has witnessed wild swings. Participants should wait for a decisive close above 16,400 for a change in bias. In case of a breakout, the 16,650-16,800 zone will act as a hurdle," he said.
Here are the key factors and events that are likely to influence Dalal Street in the week beginning May 23:
|May 23||Fed's Raphael Bostic due to speak||EU meeting||Hong Kong inflation data|
|May 24||Fed Chairman Jerome Powell due to speak, manufacturing and services PMI||ECB President Christine Lagarde due to speak, BoE's Sam Woods due to speak, France business confidence data, manufacturing and services PMI data for France, Germany and eurozone||Japan manufacturing and services PMI|
|May 25||Fed's Lael Brainard due to speak, minutes of last FOMC meeting, crude oil stockpiles||ECB President due to speak, ECB's Fabio Panetta due to speak, ECB's Philip Lane due to speak, Germany GDP data, France unemployment claims data||BoJ Governor Haruhiko Kuroda due to speak|
|May 26||GDP growth data, jobless claims data, home sales data||UK car output data|
|May 27||Personal spending data||Philip Lane due to speak||Japan inflation data|
Investors will track the last leg of the earnings season for cues. Here are a few noteworthy financial results due this week:
|Divi's, SAIL, Ramco Cements, Birlasoft, HG Infra, Zomato||May 23|
|Adani Ports, Grasim, Bank of India, Shree Renuka Sugars, Bayer Corp, Ipca Labs, Metropolis, RailTel, Balrampur Chini, Latent View, MTAR Tech||May 24|
|Coal India, BPCL, Apollo Hospitals, InterGlobe Aviation (IndiGo),NHPC, Suzlon, Deepak Fertilisers, ITI, Parle, Whirlpool, Bata||May 25|
|Hindalco, Cummins, Zee Entertainment, Motherson Sumi, NMDC, Page Industries, Muthoot Finance, Jet Airways||May 26|
|GAIL, Piramal Enterprises, BEML, City Union Bank, Karnataka Bank, Oil India, Rashtriya Chemicals & Fertilizers, Coffee Day, Glenmark, Nykaa, Akzo Nobel, Welspun Corp||May 27|
|ONGC, Mahindra & Mahindra, Clean Science, Krsnaa Diagnostics||May 28|
Aether Industries' IPO to raise up to Rs 808 crore will open for subscription on May 24. eMudhra's public offer worth up to Rs 413 crore will close on the same day.
Institutional money flows will remain on investors' radar, as foreign investors remain net sellers of shares and domestic investors net buyers on Dalal Street.
Last week, foreign institutional investors (FIIs) net sold Indian shares worth Rs 11,401.3 crore and domestic institutional investors (DIIs) made net purchases worth Rs 9,472.9 crore, according to provisional exchange data.
|Company||Ex date||Purpose||Record date|
|Angel One||May 23||Final dividend Rs 2.25||May 24|
|Caplin Point Labs||May 23||Interim dividend Rs 2||May 24|
|Coforge||May 23||Interim dividend Rs 13||May 24|
|Cyient||May 23||Final dividend Rs 14||-|
|Dolat Algotech||May 23||Interim dividend Re 0.25||May 24|
|Rishab Special Yarns||May 23||EGM||-|
|Evexia Lifecare||May 24||Stock split from Rs 2 to Re 1||May 25|
|Kennametal India||May 24||Interim dividend Rs 24||May 25|
|Brookfield India Real Estate Trust REIT||May 25||Income distribution RITES||May 26|
|GRM Overseas.||May 25||Interim dividend Re 0.25||May 26|
|India Grid Trust||May 25||Income distribution (InvIT)||May 26|
|QGO Finance||May 25||Interim dividend Re 0.1||May 26|
|SBI||May 25||Dividend Rs 7.1||-|
|TCS||May 25||Final dividend Rs 22||May 26|
|IndInfravit Trust||May 26||Income distribution (InvIT)||May 28|
|ITC||May 26||Final dividend Rs 6.25||May 28|
|Motilal Oswal Financial Services||May 26||Share buyback||May 27|
|Visaka Industries||May 26||Final dividend Rs 8||-|
|Gujchem Distillers India||May 27||Stock split from Re 10 to Re 1||May 27|
|Manappuram Finance||May 27||Interim dividend Re 0.75||May 30|
|Sawaca Business Machines||May 27||Bonus issue 10:100||May 27|
|Sawaca Business Machines||May 27||Stock split from Re 10 to Re 1||May 27|
|Solar Industries||May 27||Final dividend Rs 7.5||-|