The Indian benchmark equity indices - Sensex and Nifty - ended flat on Friday as rising coronavirus cases reduced optimism over corporate earnings and RBI's relief measures for the economy. The S&P BSE Sensex closed 15 points higher at 38,040 and NSE Nifty50 gained 13 points to 11,214. Overall, Sensex and Nifty have rise over 1.15 per cent and 1.27 per cent during the week ended August 7.
Going ahead, analysts expect market to see some correction amid uncertain environment in wake of rising coronavirus cases. With Reserve Bank policy announcements are already out, investors will keep an eye on macro data, US-China tensions and coronavirus cases which will set tone for the markets. Development on a fresh stimulus package in the US will also be watched closely by the traders.
Here's what you need to know before share market opens on August 9.
More than 100 companies, including index heavyweights Bank of Baroda, Power Grid Corporation, Titan Company, Ujjivan Financial Services, Force Motors, are scheduled to announce their June quarter earnings on Monday. The list mostly includes midcap and smallcap stocks.
Trader will also keep an eye on retail and wholesale inflation data for July and factory output data for June which are slated to be released during the week. The factory output data will give some clue about health of the economy.
Rising US-China tension will also have impact on the Dalal Street. The US President Donald Trump executive order to ban WeChat and TikTok last week have escalated tension between the world's leading economies.
Shares of defence companies will be in focus at the bourses on Monday as the Ministry of Defence announced restrictions on import of 101 weapons and military platforms to promote the domestic defence industry. The ministry will introduce import embargo on 101 items beyond a given timeline to boost indigenisation of defence production".
Traders will also keep a track on global markets as the United States is likely to announce another round of stimulus this week. The relief package, which is being discussed between lawmakers, is likely to boost market sentiments domestically and globally.
Investors will also watch movement in Brent crude oil during the week, with IHS Markit increasing its average Brent price outlook to $42.35 per barrel in 2020 and $49.25 per barrel in 2021 - an increase of $7.09 per barrel and $5.25 per barrel, respectively, from the company's May outlook.
Coronavirus cases are constantly rising in the country which is forcing economies to reconsider restrictions to contain the spread. India recorded single-day spike of 64,399 cases, taking COVID-19 tally beyond 21 lakh on Sunday. This is the third consecutive day that the COVID-19 cases have increased by more than 60,000. According to the Health Ministry's 8 am data, there are a total of 21,53,010 coronavirus cases, including 6,28,747 active cases and 14,80,885 cured. The death toll climbed to 43,379 with 861 more fatalities. India's coronavirus recovery rate has risen to 68.3 per cent and the fatality rate has declined to 2.04 per cent.
By Chitranjan Kumar