Indian Shares Likely To Open Higher; Inflation Data Eyed


(RTTNews) – Higher SGX Nifty futures point to a positive start for the Indian stock market on Monday.

Activity is likely to be mostly stock specific with quarterly earnings reports and other corporate news providing direction. Investors are also likely to react to data on wholesale and retail price inflation for the month of August.

Coronavirus news, the rupee’s movements and the trend in crude oil prices are likely to make an impact.

Apollo Hospitals Enterprises and Future Retail are scheduled to announce their quarterly earnings today.

BHEL reported a net loss of Rs 893.1 crore for the quarter ended June 2020, against loss of Rs 218.9 crore in the year-ago quarter.

IRCTC Limited said it posted a loss of Rs 24.6 crore in the first quarter, as against profit of Rs 72.3 crore a year ago. Revenue dropped to Rs 131.3 crore in the latest quarter from Rs 459.2 crore in April – June 2019.

BGR Energy Systems reported a wider loss of Rs 74.42 crore in the first quarter of this financial year, compared with net loss of Rs 12.49 crore in the year-ago quarter.

Piramal Enterprises Limited shares will be in focus after the Competition Commission of India said it has approved acquisition of 20% stake in Piramal Pharma by US-based global investment firm Carlyle Group Inc.

Data on wholesale prices in India for the month of August is due at 9 am IST. Wholesale prices dropped 0.58% from a year earlier in July 2020, easing from a 1.81% decline in the previous month.

Later in the day, at 2.30 pm IST, retail price inflation data for August is due. India’s retail price inflation climbed to 6.93% year-on-year in July 2020 from an upwardly revised 6.23% in the previous month and easily beating market expectations of 6.15%.

Data released less than an hour before the closing bell on Friday showed India’s industrial production fell 10.4% year-on-year in July. That was smaller than the 11.5% decline economists had forecast. In June, industrial production shrunk by a revised 15.8%.

Manufacturing output fell 11.1% year-on-year in July. In the April to July period, industrial production slumped 29.2% from a year ago.

Meanwhile, India reported more than 90,000 new daily coronavirus cases on five of the past seven days, an increase of about 13.5%. The number of cases rose more than 94,000 on Sunday, according to a report from the Minstry of Health and Family Welfare.

Indian shares ended with small gains after a volatile session on Friday. The benchmark BSE Sensex edged up 14.23 points or 0.04% to 38,854.55, and the broader Nifty index of the National Stock Exchange closed higher by 15.20 points or 0.13% at 11,464.45.

A Global Asset Management Seoul Korea Magazine

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