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This article is more than 2 month old.

The Week Ahead: Macro data, IPO activity, FII flow likely to influence market

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Dalal Street is set to have a busy week with more than 2,000 companies slated to post their quarterly numbers in the coming days.

The Week Ahead: Macro data, IPO activity, FII flow likely to influence market
Quarterly earnings, macroeconomic data and activity in the primary market, with the launch of Paytm's IPO on November 8, are likely to be in focus this week. Inflation numbers from major economies will also be watched closely for more clarity on interest rates going forward, after the US central bank last week announced the start of tapering of its massive, COVID-era bond-buying programme.
Both equity benchmarks Sensex and Nifty50 climbed up one percent last week, following two back-to-back weekly losses. Real estate and PSU banking stocks were in high demand in the four-day trading week. And the week ended with a positive start to Samvat 2078 in a one-hour Muhurat trading session on Diwali.
Dalal Street week ahead
More than 2,000 companies are scheduled to report financial results in the week starting November 8. Companies include Mahindra & Mahindra, MRF, Petronet, Britannia, Aurobindo Pharma and IGL.
Official data on inflation and industrial production will be watched closely to assess the pace of recovery from the pandemic lows.
What to expect
Volatility is expected to persist on Dalal Street in the week ahead, said Yesha Shah, Head of Equity Research at Samco Securities.
"The US and China’s inflation figures will influence global markets. As long as inflation remains a concern, even D-Street investors will closely monitor the domestic inflation rate, which has remained within the RBI’s comfort zone. However, an inflation rate sustainably higher than its tolerance level coupled with the stance adopted by the Fed on the interest rate hike may nudge the RBI to consider adopting a hawkish stance and begin policy tightening sooner than anticipated," she said.
Foreign fund flow will be monitored closely. Foreign institutional investors continue to be bearish on Indian equities after a bullish phase that lasted for much of this year.
The near-term texture in the market has changed to 'sell on rise' from 'buy on dip', said Santosh Meena, Head of Research at Swastika Investmart.
Technical outlook
The Nifty index is respecting its 50-day moving average, however, the near-term texture looks weak, with 18,000-18,200 levels a critical resistance area, according to Meena.
"If Nifty manages to take out this zone, we can say correction has ended and the market is ready for fresh expansion. On the downside, if Nifty slips below its rising 50-day moving average, we can expect further weakness towards the 17,450-17,250 zone," he said. 
Here are the key factors and events that are likely to influence Dalal Street in the week starting November 8:
DOMESTIC CUES
Q2 Earnings
Here are some of the companies that will report their financial results this week:
Mon: Aurobindo Pharma, Britannia, Wockhardt, Sobha, Ujjivan Small Finance, PTC India, HG Infra and EID Parry
Tue: Mahindra & Mahindra, MRF, AstraZeneca Pharma, BHEL, Petronet, Bosch, Godrej Agro, Tata Investment, Greenply, Hindustan Copper, VSTS Tillers, IDFC, HEG and NCC
Wed: Bank of Baroda, Berger Paints, Zomato, Crisil, Marksans, Oil India and Alembic Pharma
Thursday: Tata Steel, Godrej Consumer Products, Zee Entertainment Enterprises, Brigade Enterprises, Page Industries and Natco Pharma
Friday: Coal India, Abbott India and Coffee Day, Reliance Capital, Religare Enterprises, City Union Bank, EIH, Teamlease, and Force Motors
Saturday: Dish TV, Atul Auto, Ipca Labs and Manappuram Finance
IPO market
Paytm is set to launch its Rs 18,300 crore initial share sale on November 8.
If successful, the public offer will be the biggest in the country, surpassing Coal India's mega IPO in 2010. The Paytm IPO will close for subscription on November 10.
Macroeconomic data
Official data on consumer inflation and factory activity in the country is due on Friday.
FII flow
Fund flow will be in focus, as foreign portfolio investors (FPI) remain bearish on Indian equities. The net offloaded Indian shares worth Rs 4,583.2 crore ($1.8 billion) in November so far, according to provisional data from stock exchanges.
In October, they had pulled out a net Rs 13,550 crore ($1.8 billion) from Indian shares -- the highest single month net sales since March 2020.
"FIIs' behaviour will be the most critical element because they are selling continuously. If they stick to their current mood, we can expect a correction to extend further," said Meena of Swastika Investmart.
Corporate action
CompanyEx-datePurposeRecord date
Emami08-Nov-21Interim Dividend - Rs. - 4.000009-Nov-21
Indian Metals & Ferro Alloys LTD.08-Nov-21Interim Dividend - Rs. - 5.000009-Nov-21
Kansai Nerolac Paints08-Nov-21Interim Dividend - Rs. - 1.250009-Nov-21
Marico08-Nov-21Interim Dividend - Rs. - 3.000009-Nov-21
Nippon Life India Asset Management08-Nov-21Interim Dividend - Rs. - 3.500009-Nov-21
Oriental Carbon & Chemicals08-Nov-21Interim Dividend - Rs. - 7.000009-Nov-21
Swiss Military Consumer Goods08-Nov-21Right Issue of Equity Shares09-Nov-21
Transport Corporation08-Nov-21Interim Dividend - Rs. - 2.000009-Nov-21
Triveni Turbine08-Nov-21Interim Dividend - Rs. - 0.400009-Nov-21
Triveni Turbine08-Nov-21Special Dividend - Rs. - 0.600009-Nov-21
Ajanta Pharma09-Nov-21Interim Dividend - Rs. - 9.500010-Nov-21
LT Foods09-Nov-21Interim Dividend - Rs. - 0.500010-Nov-21
Dalmia Bharat09-Nov-21Interim Dividend - Rs. - 4.000010-Nov-21
Embassy Office Parks REIT09-Nov-21Income Distribution RITES10-Nov-21
Happiest Minds Technologies09-Nov-21Interim Dividend - Rs. - 1.750010-Nov-21
IndInfravit Trust09-Nov-21Income Distribution (InvIT)10-Nov-21
Procter & Gamble & Gamble Hygiene09-Nov-21Final Dividend - Rs. - 80.0000-
SAIL09-Nov-21Interim Dividend - Rs. - 4.000010-Nov-21
Share India Securities09-Nov-21Interim Dividend - Rs. - 1.250010-Nov-21
Shriram Transport Finance09-Nov-21Interim Dividend - Rs. - 8.000010-Nov-21
Triveni Engineering09-Nov-21Interim Dividend - Rs. - 1.250010-Nov-21
Aarti Industries10-Nov-21Interim Dividend - Rs. - 1.000011-Nov-21
GRM Overseas10-Nov-21Interim Dividend - Rs. - 5.000011-Nov-21
GRM Overseas10-Nov-21Stock Split From Rs.10/- to Rs.2/-11-Nov-21
Indian Railway Finance Corporation10-Nov-21Interim Dividend - Rs. - 0.770011-Nov-21
Lux Industries10-Nov-21Interim Dividend - Rs. - 12.000011-Nov-21
Bayer Cropscience11-Nov-21Special Dividend - Rs. - 125.000013-Nov-21
Bella Casa Fashion & Retail11-Nov-21Interim Dividend - Rs. - 1.000012-Nov-21
BPCL11-Nov-21Interim Dividend - Rs. - 5.000012-Nov-21
Cantabil Retail11-Nov-21Interim Dividend - Rs. - 1.000012-Nov-21
CARE Ratings11-Nov-21Interim Dividend - Rs. - 7.000012-Nov-21
Dabur11-Nov-21Interim Dividend - Rs. - 2.500012-Nov-21
Globalspace Technologies11-Nov-21Final Dividend - Rs. - 0.2000-
IOC11-Nov-21Interim Dividend - Rs. - 5.000012-Nov-21
Khaitan Chemicals11-Nov-21Interim Dividend - Rs. - 0.150012-Nov-21
Rain Industries11-Nov-21Interim Dividend - Rs. - 1.000012-Nov-21
REC11-Nov-21Interim Dividend - Rs. - 2.500012-Nov-21
Shriram City Union Finance11-Nov-21Interim Dividend - Rs. - 10.000012-Nov-21
HKG12-Nov-21Right Issue of Equity Shares15-Nov-21
JAI Corp12-Nov-21Dividend - Rs. - 0.5000-
Power Grid Infrastructure Investment Trust12-Nov-21Income Distribution (InvIT)15-Nov-21
Prince Pipes and Fittings12-Nov-21Interim Dividend - Rs. - 1.500015-Nov-21
Sun TV Network12-Nov-21Interim Dividend15-Nov-21
GLOBAL CUES
United States
Federal Reserve Chairman Jerome Powell is due to speak Monday and Tuesday.
Monthly data on inflation in China and the US will be released Wednesday. US jobless claims data is also due on the same day.
The United Kingdom will report its quarterly GDP numbers Thursday.
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