Q2 results, Donald Trump’s Asia visit key for markets this week
Mumbai: Corporate earnings and US President Donald Trump’s Asia tour will be in focus for markets this week. Trump began his 12-day Asia trip on Sunday and will be visiting Japan, South Korea, China, Vietnam and Philippines. He is joined by an assortment of corporate leaders, in an attempt to change the perception that the US is not hostile to business growth, as per reports.
According to Mint, the high point of the trip is expected to be Trump presenting “the US vision for a free and open Indo-Pacific region” in a speech in Vietnam on 10 November, the White House said in a statement ahead of the visit.
Meanwhile, index heavyweights, including State Bank of India (SBI), Tata Motors, Mahindra & Mahindra and Larsen and Toubro will announce their September quarter earnings this week. Motilal Oswal Securities Ltd expects loan growth of SBI to be muted in Q2 as consolidation with subsidiaries is expected to result in an overall muted quarter. It says net interest income (NII) may increase 6% quarter-on-quarter on a low base as Q1FY18 was affected by interest reversals. Stress additions may continue to be high, the brokerage firm said.
Key things to watch out in Tata Motors Q2 earnings will be the impact of forex hedge loss, and current demand trends for Jaguar Land Rover and outlook, particularly in China and the US. Tata Motors’s update on launches, Chery joint venture operations and commercial vehicles business outlook will be a few things investors will be looking at in the management commentary.
According to Mustafa Nadeem, chief executive officer, Epic Research, a few sectors like PSU banks, auto and FMCG may gain further momentum this week. “Realty, banking and select stocks from mid-cap and small-cap space may outperform the week,” he said.
In the primary markets, Reliance Nippon Life Asset Management will make its stock market debut on Monday. The company’s initial public offering (IPO) was subscribed 81.54 times during 25 to 27 October, data available with the National Stock Exchange (NSE) showed. The company, which would be the first mutual fund listing on Indian stock exchanges, had fixed the price band at Rs247-252 per share. This was also the first IPO from the Reliance Group after Reliance Power in 2008.
HDFC Standard Life Insurance Co. Ltd will launch its Rs8,695 crore initial share sale on 7 November. The company has set a price band of Rs275-290 per share for the IPO which will close on 9 November.