Progress on GST bill to dictate trend
Next batch of Q1 June 2016 corporate results, progress of monsoon rains, the outcome of the monthly surveys on India's manufacturing and services sectors, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.
Meanwhile, investors are awaiting the progress on the Goods and Services Tax (GST) constitutional amendment bill in parliament. According to reports, the government on Friday, 29 July 2016, listed the much-awaited GST bill for consideration and passage in Rajya Sabha's agenda for the next week. Minister of state for parliamentary affairs Mukhtar Abbas Naqvi, while making a statement regarding government business for the week starting 1 August in the Upper House, reportedly said that the GST constitutional amendment bill will be taken up for consideration and passage in the Rajya Sabha. The government is keen to get the GST Bill approved during the Monsoon Session of Parliament ending on 12 August 2016.
The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax.
Select companies are scheduled to announce their Q1 June 2016 results in the first week of August 2016. HCL Infosystems will announce its April-June 2016 results on Saturday, 30 July 2016. Hotel LeelaVenture, InterGlobe Aviation, Piramal Enterprises, Tata Communications and Tech Mahindra will announce their April-June 2016 results on Monday, 1 August 2016. Indian Bank and Voltas will announce their April-June 2016 results on Tuesday, 2 August 2016. Bata India, Berger Paints India, Cadila Healthcare and HCL Technologies will announce their April-June 2016 results on Wednesday, 3 August 2016. Tata Power Company will announce its April-June 2016 results on Thursday, 4 August 2016. Bharat Electronics, Bharat Forge, GlaxoSmithkline Consumer Healthcare and Pfizer will announce their April-June 2016 results on Friday, 5 August 2016.
The performance of the monsoon rains is being keenly watched. In its monsoon update issued on Thursday, 28 July 2016, the India Meteorological Department (IMD) said that for the country as a whole, cumulative rainfall during this year's monsoon as on 27 July 2016, was at 0% above the Long Period Average (LPA).
Stocks of auto companies will be in focus as companies start unveiling monthly sales volume data for June 2016 from Monday, 1 August 2016.
Stocks of public sector oil marketing companies (PSU OMCs) will be in focus as a fuel price review is due at the end of the month. PSU OMCs undertake fuel price review twice during the month based on the trend in international oil market. The first price review takes place during the middle of the month and the second on the last day of the month. Aviation stocks will be in focus as a monthly review of jet fuel prices is due at the end of the month. PSU OMCs review jet fuel prices on the last day every month based on the average imported crude oil price for the month. Jet fuel prices are directly linked to crude oil price.
Among domestic macro economic data, Markit Economics will announce the India Manufacturing PMI for July 2016 on Monday, 1 August 2016. The Nikkei India Services PMI will be declared on Wednesday, 3 August 2016.
On the global front, China will unveil Manufacturing Purchasing Managers Index (PMI) data and Caixin Manufacturing PMI data for July 2016 on Sunday, 31 July 2016.
Germany Manufacturing PMI data and UK Manufacturing PMI data for July 2016 will be unveiled on Monday, 1 August 2016. US Institute of Supply Management (ISM) Manufacturing PMI report for July 2016 will also be unveiled on Monday, 1 August 2016.
UK Construction PMI for July 2016 will be unveiled on Tuesday, 2 August 2016.
UK Services PMI data for July 2016 will be unveiled on Wednesday, 3 August 2016. US ADP Nonfarm Employment Change for July 2016 will be unveiled on Wednesday, 3 August 2016. US ISM Non-Manufacturing PMI report for July 2016 will be unveiled on Wednesday, 3 August 2016.
Bank of England (BOE) monetary policy committee members vote on where to set the rate on Thursday, 4 August 2016.
US Nonfarm Payrolls data for July 2016 will be unveiled on Friday, 5 August 2016.
US Unemployment Rate data for July 2016 will be unveiled on Friday, 5 August 2016
Meanwhile, investors are awaiting the progress on the Goods and Services Tax (GST) constitutional amendment bill in parliament. According to reports, the government on Friday, 29 July 2016, listed the much-awaited GST bill for consideration and passage in Rajya Sabha's agenda for the next week. Minister of state for parliamentary affairs Mukhtar Abbas Naqvi, while making a statement regarding government business for the week starting 1 August in the Upper House, reportedly said that the GST constitutional amendment bill will be taken up for consideration and passage in the Rajya Sabha. The government is keen to get the GST Bill approved during the Monsoon Session of Parliament ending on 12 August 2016.
The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax.
Select companies are scheduled to announce their Q1 June 2016 results in the first week of August 2016. HCL Infosystems will announce its April-June 2016 results on Saturday, 30 July 2016. Hotel LeelaVenture, InterGlobe Aviation, Piramal Enterprises, Tata Communications and Tech Mahindra will announce their April-June 2016 results on Monday, 1 August 2016. Indian Bank and Voltas will announce their April-June 2016 results on Tuesday, 2 August 2016. Bata India, Berger Paints India, Cadila Healthcare and HCL Technologies will announce their April-June 2016 results on Wednesday, 3 August 2016. Tata Power Company will announce its April-June 2016 results on Thursday, 4 August 2016. Bharat Electronics, Bharat Forge, GlaxoSmithkline Consumer Healthcare and Pfizer will announce their April-June 2016 results on Friday, 5 August 2016.
The performance of the monsoon rains is being keenly watched. In its monsoon update issued on Thursday, 28 July 2016, the India Meteorological Department (IMD) said that for the country as a whole, cumulative rainfall during this year's monsoon as on 27 July 2016, was at 0% above the Long Period Average (LPA).
Stocks of auto companies will be in focus as companies start unveiling monthly sales volume data for June 2016 from Monday, 1 August 2016.
Stocks of public sector oil marketing companies (PSU OMCs) will be in focus as a fuel price review is due at the end of the month. PSU OMCs undertake fuel price review twice during the month based on the trend in international oil market. The first price review takes place during the middle of the month and the second on the last day of the month. Aviation stocks will be in focus as a monthly review of jet fuel prices is due at the end of the month. PSU OMCs review jet fuel prices on the last day every month based on the average imported crude oil price for the month. Jet fuel prices are directly linked to crude oil price.
Among domestic macro economic data, Markit Economics will announce the India Manufacturing PMI for July 2016 on Monday, 1 August 2016. The Nikkei India Services PMI will be declared on Wednesday, 3 August 2016.
On the global front, China will unveil Manufacturing Purchasing Managers Index (PMI) data and Caixin Manufacturing PMI data for July 2016 on Sunday, 31 July 2016.
Germany Manufacturing PMI data and UK Manufacturing PMI data for July 2016 will be unveiled on Monday, 1 August 2016. US Institute of Supply Management (ISM) Manufacturing PMI report for July 2016 will also be unveiled on Monday, 1 August 2016.
UK Construction PMI for July 2016 will be unveiled on Tuesday, 2 August 2016.
UK Services PMI data for July 2016 will be unveiled on Wednesday, 3 August 2016. US ADP Nonfarm Employment Change for July 2016 will be unveiled on Wednesday, 3 August 2016. US ISM Non-Manufacturing PMI report for July 2016 will be unveiled on Wednesday, 3 August 2016.
Bank of England (BOE) monetary policy committee members vote on where to set the rate on Thursday, 4 August 2016.
US Nonfarm Payrolls data for July 2016 will be unveiled on Friday, 5 August 2016.
US Unemployment Rate data for July 2016 will be unveiled on Friday, 5 August 2016
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