The market continued to rise for fourth consecutive week with benchmark indices rising 0.6 percent, supported by Reliance Industries’ better-than-expected September quarter earnings and hopes of another fiscal stimulus from European Central Bank for European countries. Most of earnings announced during the week were in-line or slightly below estimates which also supported the market.
The coming week is very important for primary as well as secondary markets. Lots of big companies’ earnings, two IPOs and FOMC meeting will keep investors busy throughout the week.
Dealers expect the market to see gap up opening on Monday after surprise rate cut announced by China’s central bank on Friday evening. The People’s Bank of China (PBOC) has slashed its one-year benchmark bank lending rate by 25 basis points to 4.35 percent (effective from October 24) to boost a slowing economy. The one-year benchmark deposit rate was also cut by 25 basis points to 1.50 percent.
Two companies will open their public issues for subscription next week. The IPO of Interglobe Aviation, the holding company of Indigo (largest airline company by market share), will be opened during October 27-29, 2015. It is expected to raise more than Rs 3,000 crore through this issue which consists of a fresh issue of more than Rs 1,000 crore and an offer for sale of shares by Interglobe Enterprises, Rahul Bhatia, Rakesh Gangwal, Shobha Gangwal, IGT-Interglobe Technologies Philippines, among others. Price band for issue is fixed at Rs 700-765 per share.
S H Kelkar and Company, the oldfragrance and flavour company, will also launch its IPO during the week that will be opened during October 28-30. It aims to raise more than Rs 500 crore with private equity investor Blackstone offloading its stake through issue.
Lots of big companies like Bharti Airtel, HDFC, Axis Bank, Lupin, Maruti Suzuki, Vedanta, Ambuja Cements, Dabur India, Dr Reddy’s Labs, NTPC, ICICI Bank, ITC, Larsen & Toubro and Kotak Mahindra Bank among others will announce their July-September quarter earnings next week.
Other than blue chips, ENIL, Blue Star, TVS Motor, Thermax, Amara Raja Batteries, Jet Airways, Raymond, Bharat Forge, Glenmark Pharma, Emami, Grasim, Yes Bank, Torrent Pharma, Nestle, Colgate, Crompton Greaves, HCC, Titan Company, Suzlon, Apollo Tyres etc will also declare results.
Globally, the US Federal Open Market Committee meeting will be held on Tuesday and Wednesday. Investors will closely watch this meeting for Fed’s interest rate hike decision.