Stock Market This Week: RBI MPC, Jio IPO, And US Jobless Claims Among Other Cues To Watch Out For

Indian equities posted strong gains last week, with the Sensex rising 3.11 per cent to 74,729.27 and the Nifty advancing 2.78 per cent to 23,146.15. An improved domestic growth outlook and buying in large-cap stocks supported the recovery, although inflationary pressures, crude oil prices and persistent foreign fund outflows remained matters of concern.

In this holiday-shortened week, investors will track the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting minutes, US economic data, corporate earnings, and the Rs 30,213 crore Jio Platforms initial public offering (IPO). Foreign institutional investor (FII) flows, the rupee and US Treasury yields will also remain in focus.

Stock Market This Week: Cues To Track

Indian stock exchanges will remain closed on October 22 on account of Dussehra. Here are the cues that will guide D-Street’s sentiment this week.

RBI MPC Minutes On October 21

The minutes of the RBI’s latest MPC meeting, due on October 21, will offer insights into policymakers’ assessment of inflation, economic growth and liquidity conditions. Investors will look for signals on the interest rate outlook and any differences among members over inflation and growth risks.

US Jobless Claims On October 22

Weekly US initial jobless claims data, scheduled for October 22, will provide an update on labour market conditions. Economists expect claims at 200,000, against 199,000 in the previous week.

The reading could influence expectations of Federal Reserve rate cuts, with implications for US Treasury yields, the dollar and emerging-market equities.

US Flash PMI Data On October 23

The October flash purchasing managers’ index (PMI) readings for US manufacturing and services, due on October 23, will offer an early indication of business activity in the world’s largest economy.

The data will help investors assess demand and growth momentum, while gauging whether economic strength could keep inflationary pressures and interest rates elevated.

Jio Platforms IPO

Jio Platforms’ Rs 30,213 crore PO comprises a fresh issue of 270 million shares, priced between Rs 1,065 and Rs 1,119 apiece. The minimum application is for 12 shares, requiring an investment of Rs 13,428 at the upper end of the price band.

The basis of allotment is expected on October 26, with listing scheduled for October 28 on the NSE and the BSE.

Subscription trends will indicate investor appetite for a large public offering, while the listing could influence sentiment towards upcoming IPOs.

Q2 Earnings To Drive Stock-Specific Action

The September-quarter earnings season will remain a key driver of stock-specific moves. Bajaj Finance, Hindustan Zinc, UltraTech Cement, Union Bank of India, L&T Technology Services, Indian Renewable Energy Development Agency, Piramal Finance, Delta Corp, Just Dial, Sobha, HFCL and Waaree Renewable Technologies are among the companies scheduled to report results on October 19.

Investors will assess financial firms for credit growth, asset quality and margins, while industrial and commodity-linked companies will offer clues on demand, input costs and profitability. 

Management commentary on consumer spending, capital expenditure and the second-half outlook will also be important.

Domestic Economic Data

September infrastructure output and the HSBC Flash Composite PMI, along with its manufacturing and services components for October, will provide updates on domestic economic activity. The readings will help investors gauge growth momentum and assess the outlook for corporate earnings.

Investors will also look out for the RBI foreign exchange reserves data for indications of the country’s external position and foreign exchange management.

Crude Oil, Rupee And FPI Flows

Crude oil prices, the dollar index and Treasury yields will remain important external cues. Higher oil prices could add to India’s import bill and inflationary pressures, while rising US yields may weigh on foreign investor demand for emerging-market assets.

Foreign portfolio investors (FPI) flows and rupee movements will help investors assess foreign investor sentiment and the strength of the domestic market recovery.