Caution is likely to prevail in shares ahead of the July-September quarter earnings from Infosys Ltd on October 11, which will kick off the results reporting season for blue chips. Traders say weakening economic growth and still high inflation could have weighed on corporate earnings.
India is set to report industrial output data for August on Friday.
Investors will also be eyeing market regulator Securities and Exchange Board of India (Sebi), whose quarterly board meeting is slated for Saturday, October 12.
Finance Minister P Chidambaram is visiting the United States on October 8-October 14, to attend the G20 finance ministers’ and central bank governors’ deputies meeting in Washington and the World Bank/IMF’s annual meeting.
The rupee could see more range-bound trading given the continued uncertainty over US budget talks, although sentiment in debt markets could remain more positive ahead bond purchases worth up to Rs. 10,000 crore by the Reserve Bank of India (RBI).
The apex bank is expected to buy the bonds on Monday, raising expectations for additional bond purchase announcements.
However, some volatility could come in the rupee as the US Congress remains deadlocked ahead of October 17 when the country must raise its borrowing limit or risk defaulting on its debt.
India will release factory output data for August on Friday. Another positive reading after the July surprise will lead to continued hopes for a rebound in the economy.
Key factors/events
On Monday, World Trade Organisation (WTO) director general Roberto Azevedo will be in New Delhi.
Mr Chidambaram will be attending G20 and World Bank meetings in Washington Wednesday onwards.
On Thursday, the government will likely release trade data (tentative October 10 – 17) for the month of September.
On Friday, Infosys, India’s second-largest software services exporter, will be reporting its earnings for the quarter ended September, kicking off the earnings season.
The country’s industrial output data for the month of August will also be released late on this day.