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India Week Ahead: Q1 Earnings, Macro Eco Data, DHFL Lenders Meet, Fed Chair Testimony

Shiv Gupta
Indian markets snapped a 4-day gaining streak as Union budget failed to impress the street. Benchmark index Nifty closed over 170 off day’s high to settle around 11,800 level. Lets take a look at some events which will guide the markets this week.

Indain markets snapped a 4-day gaining streak as Union budget failed to impress the street. Benchmark index Nifty closed over 170 off day’s high to settle around 11,800 level.

For the week Sensex closed up 0.2%, Nifty closed flat and Nifty Bank index rose 1%. Indiabulls Housing Finance 19.7%, IndusInd Bank 8.7%, UPL 6.5%, Bharti Airtel 5.2% and HDFC 4% were among Nifty gainers whereas Yes Bank -19%, Sun Pharma -6.4%, Vedanta -6.1%, BPCL -5.7% and Tata Steel -5.2% were among Nifty losers.

Lets take a look at some events which will guide the markets this week.

Q1 Earnings
Q1FY20 earning season begins with I.T. bellwether TCS will announce its results on Tuesday followed by Infosys, HDFC Bank, ITC Ltd and Punjab National Bank later in the week. Earnings will provide further cues for markets.

Macro Eco Data
CPI data for the month of June and IIP for the month of May will be released this week.  While CPI is expected at 3.2%, IIP is expected at 2.3%

DHFL Lenders Meet
DHFL board will meet on Wednesday to discuss & approve resolution plan. SBI led bank consortium aims to complete entire resolution of DHFL in 6 Months. DHFL board will pass resolution to convert debt to equity, hike authorized share capital. BTVI has learnt from sources that the capital restructuring, implementation of resolution plan for DHFL will be over by September 25 and change of ownership, induction of strategic investor in DHFL targeted by December 31

Fed Chair Testimony/Fed Minutes
Minutes from the Fed last policy meeting will be keenly watched this week,  also Fed Chairman Jerome Powell will testify before lawmakers on Wednesday. Fed's minutes may further cues to a possible rate action in Federal Reserve's meeting on July 30-31. Inflation in U.S. is below 2% aim of Fed, indicating a rate cut.

FM To Address RBI Central Board
Post presenting the budget, FM Sitharaman will address the post-budget meeting of the RBI's central board on Monday and highlight the key points of the Budget, including the fiscal consolidation roadmap. Government has lowered fiscal deficit target to 3.3% of GDP for FY20 vs 3.4% earlier as it is expecting net additional revenue of Rs 6,000 cr over the interim Budget estimates. Govt also laid out a roadmap to reduce fiscal deficit to 3% by FY21