Week Ahead: Q1 Results, India’s CPI data, dividends announcement, Hindenburg report, IPO among key market triggers

The financial markets are gearing up for a busy week ahead, with several key companies set to release their first-quarter earnings reports. Industry leaders such as Godrej Industries Ltd., Hero Motorcorp Ltd., Hindalco Industries Ltd., and Vodafone Idea Ltd. are among those expected to report, potentially influencing market sentiment.

The recent allegations by Hindenburg Research against the chairperson of India's market regulator, Madhabi Puri Buch, could potentially cast a shadow over market sentiment. The U.S.-based short-seller's report, released on Saturday, claims that Buch previously held investments in offshore funds also utilized by the Adani Group, a claim she has vehemently denied.

In the primary market, activity is expected to be relatively quiet, with nine small and medium enterprise (SME) initial public offerings (IPOs) and five new listings scheduled.

On the global front, investors will be closely watching China's interest rates and economic activity data. The People's Bank of China's decision last month to unexpectedly cut its key rate has left analysts speculating about future moves. Most experts anticipate a return to a more predictable approach this time, with rates likely to remain unchanged.

Here are the key triggers for stock markets in the coming week:

Q1 results this week

Several other notable companies are slated to release their Q1 earnings this week, including Muthoot Finance Ltd., Nazara Technologies Ltd., Dollar Industries Ltd., Hindustan Copper Ltd., Housing and Urban Development Corp., and Indian Railway Finance Corp.

India's Consumer Price Index data

Domestic economic indicators will also be in focus, with India's Consumer Price Index (CPI) set to be released on August 12. Economists are forecasting a figure of 3.65%, down from the previous 5.08%. Additionally, India's Wholesale Price Index (WPI) inflation, due on August 14, is expected to come in at 2.39%, lower than the previous 3.36%.

Upcoming IPOs

The primary market will see some action with Saraswati Saree Depot's IPO opening next week. The company has set its issue price in the range of ₹152-160 per share, offering a combination of fresh shares and an offer-for-sale component.

Corporate action

Several companies, including ICICI Bank Ltd., NHPC Ltd., and Brookfield India Real Estate Trust REIT, have announced upcoming record dates for dividend payments.

As these events unfold, market participants will be closely monitoring their potential impact on various sectors and the overall economic landscape.