Q1 earnings, IPO, global cues, progress of monsoon among key factors to guide market next week

Trend in global stock markets, June quarter results, the movement of rupee against the dollar and crude oil prices will dictate trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be monitored.

The key thing to watch out for in the near future would be the US bond yields because any rise in yields can take out the FII money from developing countries like India to western markets and could also be a risk for emerging markets currencies.

The Dollar Index, which measures the US currency against a basket of six peers, will also be closely watched. Investors will continue to watch the first-quarter earnings season for direction. Avenue Supermarts will announce Q1 result on 10 July 2021. Infosys and L&T Technology Services will declare Q1 results on 14 July 2021. Wipro will unveil Q1 result on 15 July 2021.

Investors will also be looking at the $1.25 billion initial public offering (IPO) of food delivery startup Zomato next week, which is set to open for subscription on July 14. The company has fixed a price band of Rs 72-76 per equity share. The offer will close on July 16.

Economic data

The Industrial Production and Manufacturing Production data for May will be released on 12 July 2021. Inflation rate for June is due on 12 July 2021. WPI inflation for June 2021 is due on 14 July 2021.

On the coronavirus front, investors would continuously watch out government’s course of action along with progress on the vaccination drive. Besides, as new Covid cases have seen a considerable decline, all eyes would be on state governments for further easing of the restrictions.

Monsoon

Progress of monsoon will be closely watched. The India Meteorological Department (IMD) said that the southwest monsoon over the country is likely to be normal in July. Monthly rainfall for July 2021 over the country as a whole is most likely to be normal (94 to 106% of Long Period Average), the IMD said. Overseas, China will announce Q2 GDP data on 15 July 2021.

The US will announce the inflation rate for June on 13 July 2021. US retail sales for June will be announced on 16 July 2021. Euro Area’s industrial production data for May will be announced on 14 July 2021.

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