Third quarter December 2007 earnings will guide the market in the coming week. Some of the top brokerages expect slowdown in aggregate earnings growth of 30-Sensex firms in Q3 December 2007. Earnings surprise holds key.
The 30-share BSE Sensex gained 140.56 points or 0.67% to 20,827.45 in the week ended Friday, 11 January 2008. However, the S&P CNX Nifty declined 74.20 points or 1.18% to 6,200.10 in the week.
With the beginning of the calendar year 2008, foreign institutional investors (FIIs) are expected to make fresh fund allocations. FIIs pumped in Rs 71,486.50 crore or $17.23 billion in Indian equities in calendar year 2007.
FII inflow in calendar year 2008 amounted to Rs 3176.70 crore (till 10 January 2008). Mutual funds bought shares worth a net Rs 1473 crore in the first few days of the New Year, till 10 January 2008.
There might be some liquidity drain from the seconday market as action might shift to primary market as the mega initial public offer (IPO ) of Reliance Power opens for subscription on 15 January 2008. The IPO ends on 18 January 2008. There are few other large public offers in the pipeline in the coming months.
Among the frontline companies, State Bank of India, Ranbaxy Laboratories, Housing Development Finance Corporation, ITC and Wipro will announce their December 2007 quarterly results in the coming week.
Infrastructure Development Finance Company, EMCO, KLG Systel, Monnet Ispat, Omnitech Infosolutions, Amtek India, Jubilant Organosys, Allahabad Bank, Petronet LNG, Chambal Fertilizers & Chemicals and Idea Cellular among others will also declare their December 2007 quarterly results next week.