Market To Track Earnings, IPOs and US Fed Meeting Outcome
By : Ravi Ranjan Prasad
Update: 2024-07-28 15:03 GMT
Mumbai: Primary market will be keenly watched in the week ahead as three big IPOs will open for bidding - Ola Electric, Akums Drugs and Ceigall India. Secondary market will be also in focus as it is again near all the time high after the Union Budget and crowded earnings season will see several blue chip companies declare their first quarter performance - ACC, Tata Steel, ITC, Adani Enterprises, Adani Ports & SEZ, Tata Motors and Titan among others.
Ola Electric's mega IPO will open on Aug 2 and close on Aug. 6 as per the red herring prospectus(RHP) released by the company. The IPO which comprises of fresh issue of equity shares worth Rs 5,500 crore and and an offer for sale of over 8.49 crore equity shares by promoters and investor selling shareholders will be biggest public issue to hit the market this year.
The Federal Open Market Committee (FOMC) meeting scheduled on July 30-31 is expected to be crucial as US Fed may signal
September rate cut and is expected to maintain a dovish tone, keeping rates unchanged at 5.25 per cent-5.50 per cent till then, said analysts.
Market benchmark Nifty-50 hit a new all time high of 24,861 on Friday and analyst see it moving towards 25,000 mark. "If the index sustains above 24,860, it may attempt to test the psychological level of 25,000," said Hrishikesh Yedve, thechnical analyst,Asit C. Mehta Investment.
"The direction of the domestic market will likely be influenced by the progress of the earnings season. Additionally, global economic updates, including US Fed & BoE monetary policies, US employment data, and Eurozone GDP figures, are expected to impact market trends." said Vinod Nair,head-Research, Geojit Financial Services. "Although the government's emphasis on fiscal discipline and growth is appealing, foreign portfolio investors are cautious due to current high valuations and muted expectations for Q1FY25 results. Meanwhile, domestic institutions continue to employ a "buy on dips" strategy, which contributed to market gains on the week's last trading day, particularly in the pharma, auto, metal, IT, and FMCG sectors,: Nair added.