Monday, October 17, 2016

THE WEEK AHEAD

Q2 results to dictate market trend


Q2 results, global macroeconomic data, 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.

Investors will closely watch the ongoing Q2 results of India Inc. UltraTech Cement is scheduled to announce its Q2 September 2016 results on Monday, 17 October 2016. ACC will announce its Q3 September 2016 results on Friday, 21 October 2016. 

Hindustan Zinc unveils its Q2 September 2016 results on Wednesday, 19 October 2016. Reliance Industries and Yes Bank will declare its Q2 September 2016 results on Thursday, 20 October 2016. Wipro, HCL Technologies and Cairn India will announce its Q2 September 2016 results on Friday, 21 October 2016.

PSU OMCs will be in focus as these companies will undertake fuel price revision during the middle of this month. PSU OMCs undertake fuel price review during the middle and at the end of every month based on the trend in international oil market in the previous fortnight.

On the global front, the United States Industrial Production data for September will be declared on Monday, 17 October 2016. Industrial Production in the United States decreased by 1.1% on the year in August 2016, following an upwardly revised 0.6% drop in the previous month. On Wednesday, 19 October 2016, China will report third-quarter GDP data. National Bureau of Statistics is scheduled to report industrial production and retail sales for September on the same day. The Chinese economy advanced an annual 6.7% in the second quarter of 2016, the same pace as in the previous quarter. The Bank of England publishes a monthly report of its agents' summary of business conditions, providing insight into investment and hiring plans as well as consumer spending on the same day.

On Thursday, 20 October 2016, the European Central Bank's Governing Council meets to review interest rates and stimulus programs. The ECB left its benchmark refinancing rate unchanged at 0% for the fifth straight time in September, as widely expected. Policymakers reiterated they expect the key ECB interest rates to remain at present or lower levels for an extended period of time and confirmed that the monthly asset purchases of €80 billion are intended to run until the end of March 2017, or beyond, if necessary.

Meanwhile, the third and last US presidential debate of 2016 between Democrat Hillary Clinton and Republican Donald Trump takes place in Las Vegas at the University of Nevada on Wednesday, 19 October 2016.

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