New Delhi: On July 15 Indian stock market indices concluded superior through the trading week that concluded. The Nifty rallied precedent the psychological mark of 8,500 for the primary time in 11 months to shut at 8,541. International markets were buoyed U.S. jobs data and applaud the victory of Japan’s ruling coalition in the upper house election. PM Shinzo Abe is expected to unveil a fresh stimulus package to help the nation sluggish financial system. On Friday the rupee increased 42 paise to shut the week at 67.48 next to the dollar and FIIs were net buyers to the tune of $481.7 million for the week, out of which $220 million was invested. Data declared through the week were CPI, WPI and IIP. Retail price rises inched up to a 22-month high of 5.77 pct in June mainly due to elevated food inflation and wholesale inflation rose to a 20-month high of 1.62 percent. On the brighter side, May IIP was up a higher-than-expected 1.2 percent, while exports increase for first time in 19 months in June and buy and sell deficit decreased 25 percent to $8.12 billion through the similar month. The chairman of NHAI declared that 97 road projects which entail an investment of 1 trillion rupees will be awarded in 2016-17. The growth is positive for the road expansion sector, especially for EPC contractors. PSU Banks continued their rally on the back of news that the government would release the first tranche of its proposed 250 billion-rupee capital infusion. Marketplace is also speculating on the next RBI governor, who will be under huge pressure to reduce benchmark rates.
The IT sector controls the limelight throughout the week with two bellwethers – TCS and Infosys. TCS met expectations while Infosys disappointed the Street as it reduced its revenue growth guidance for FY17. Reliance Industries story a fit epasio with record GRMs supported by inventory augment. Presently Q1 earnings will set the tone for markets. Hindustan Unilever, UltraTech Cement, Wipro, HDFC Bank, Cairn India, ITC, Kotak Mahindra Bank, and Axis Bank are some of the key corporation which will account their numbers. On Monday the downpour session of parliament begins and investors are hoping that the Goods and Services Tax (GST) bill will lastly be passed. Regarded as the single biggest taxation reform since independence, GST will abridge and harmonise the indirect tax regime in the country and its passage could result in an extended rally. Though, post the initial euphoria, markets will debate on issues which will crop up when the tax reform is actually implemented, including the inflationary pressure on the economy. On the international front, a gathering of the leading council of the European Central Bank (ECB) on financial policy will be held subsequently week. Data on Nikkei Flash Japan Manufacturing PMI will be out on Friday. Markit Flash Composite PMIs for Germany, France and the euro zone for July will also be free on the same day. On Thursday in the U.S., data on lodging construction for June will be out on Tuesday while data on existing home sales for June. With international central banks in rehabilitated stimulus mode and concerns over Brexit subsiding, we have seen an expanded risk appetite in monetary markets including India. But from here on, local factors like quarterly earnings and the monsoon session of parliament will say the direction of markets. It would be careful to book partial profits and on parliament proceedings as any holdup in way of the GST bill could make stocks nervous.