Market view on week ahead 11th to 15th November 2019

If you think the economy needs a serious dose of medicine to be up and running, the government just provided one -- a Rs 25,000 crore funding window to help unclog stalled projects in the real estate sector.

The Street lapped it up, marking some fresh all-time closing highs. Even on the global trade front, there is a glimmer of hope. The US and China have stepped back from the brink and agreed to roll back tariffs on each other's goods in phases.

While India chose to give the RCEP (Regional Comprehensive Economic Partnership) a miss, the uncertainty of politics in Maharashtra remains a heartburn for many. Many high-profile cases, including Ayodhya land dispute, are also waiting for the judgement day.

The ongoing earnings season for the July-September quarter has a lot to say about health of India Inc. What will keep you busy next week? Sit back and relax. We bring you your weekly update of events to watch for next week.

November 11

One crucial part of the Indian economy is manufacturing. An important indicator here is the index of industrial production, due on Monday. August 2019 was a shocker as it fell 1.1 percent year-on-year, the sharpest decline since February 2013. The consensus for September is -2 percent.

Sedition case-Protest petition: Remember the sedition case against 49 prominent personalities? Here's a twist. After the Bihar police ordered closure of the sedition case filed against the personalities, who had signed an open letter to Prime Minister Narendra Modi over rising incidents of mob lynching, the complainant on Thursday filed a "protest petition" against the police. Advocate Sudhir Kumar Ojha, in the fresh petition, alleged that the police acted "under political pressure" and urged the court to monitor the case or hand it over to the Central Bureau of Investigation (CBI). “The date of hearing for my protest petition has been fixed as November 11,” he said.

DMK general council meeting: DMK general council meeting will be held at Royapettah YMCA ground in Chennai on November 11. In a statement on Thursday, party general secretary K Anbazhagan said the meeting would discuss preparations for local body elections. It would pass the audited account for the last financial year and changes in the party's sub-laws.

More jail time for Nirav Modi: Troubled diamond trader Nirav Modi, who is fighting extradition to India related to the nearly $2 billion Punjab National Bank (PNB) fraud and money laundering case, has been remanded to prison till November 11. He appeared via video link from his London jail for a regular remand hearing.

Earnings: As per Reuters estimates, Britannia Industries net sales are likely to be at Rs 2,913 crore while net profit is projected at Rs 366 crore.

Coal India's net sales are seen at Rs 19,828 crore while net profit may hit Rs 2,548 crore.

Hindalco Industries may see revenue at Rs 30,181 crore while bottom line may come down to Rs 130 crore.

Motherson Sumi Systems net sales are likely to be at Rs 16,059 crore and net profit to Rs 356 crore.

November 12

It's time for inflation stock-taking. September retail inflation rose to 3.99 percent year-on-year (YoY), within striking reach of the RBI's medium term target of 4 percent. This was the highest inflation rate since July last year as food prices rose to an over 3-year high. The consensus for October is 4.25 percent. The official data will be released on Tuesday.

Earnings: Aurobindo Pharma's net sales are seen at Rs 5,594 crore and net profit at Rs 685 crore.

November 13

The Bombay High Court on November 4 asked the Reserve Bank of India (RBI) to file an affidavit by November 13 explaining the withdrawal limit set for PMC (Punjab and Maharashtra Co-operative Bank) depositors. The case will be next heard on November 19.

Prince Charles to visit India: Prince Charles, heir-to-the-British throne, will make an official visit to India with a focus on sustainable markets, climate change and social finance. Charles, 70, will arrive in New Delhi for the two-day visit on Wednesday.

INX Media case: A special court in Delhi has dismissed Enforcement Directorate's (ED) plea seeking one more day's custodial interrogation of former finance minister P Chidambaram and sent him to judicial custody in Tihar jail till November 13 in the INX Media money laundering case. The court was blunt as it said the policy custody of 15 days is “not a ritualistic formality”.

Homebuyers unite: An association of homebuyers has approached a Delhi court seeking prosecution of a real estate company and its officials under the stringent Maharashtra Control of Organised Crime Act (MCOCA) to curb "organised crime" in the sector. Unific Tech-one Patrons Independent Association filed the complaint seeking a direction to the Delhi Police to prosecute the directors of Earth Infrastructure. The Economic Offences Wing (EOW) of the Delhi Police, however, has told the court that the provisions of MCOCA cannot be invoked. The court will further hear the matter on November 13.

Earnings: ABB India's net sales are seen at Rs 1,660 crore while net profit is likely to be at Rs 123 crore.

Bharat Heavy Electricals net sales are seen at Rs 7,051 crore, while net profit may be around Rs 157 crore.

Cadila Healthcare's net sales are pegged at Rs 3,426 crore and net profit may be around Rs 352 crore.

November 14

Thursday is the day when the official wholesale inflation for October will be out. While the central bank does not expect the print to cross the 4 percent mark, the forecast for October is -0.1 percent. Wholesale prices in India rose by 0.33 percent YoY in September 2019. It was the lowest wholesale inflation rate since a 0.09 percent fall in June 2016, as cost of food rose at a slower rate and there was a decline in prices of both manufactured products and fuel.

OPEC monthly report: The OPEC (Organization of the Petroleum Exporting Countries) is set to release the Oil Market Report for October. Besides covering key issues at play, the OPEC report offers an outlook for the crude oil market, including demand and supply trends for the year ahead.

Litmus test for Article 370: The Supreme Court fixed November 14 to commence hearing on a clutch of petitions challenging constitutional validity of the Centre's decision to abrogate Article 370 that accorded special status to Jammu and Kashmir. A five-judge Constitution bench headed by Justice N V Ramana allowed the Centre and the Jammu and Kashmir administration to file counter-affidavits on petitions challenging the scrapping of the provision.

Can e-cigarette ban stand legal scrutiny? The Calcutta High Court directed the Centre to file its affidavits against the petitions challenging its decision to ban e-cigarettes in the country. The government had on September 18 passed an ordinance making the production, import, export, transport, sale or advertisements of e-cigarettes and such "alternative" smoking devices a cognisable offence attracting jail term and fine. Justice Arindam Sinha directed the government to file affidavits in opposition to the petitions by November 5 and the petitioners to file their rejoinders by November 13. The matter will be heard by the court again on November 14.

Earnings: Apollo Hospitals Enterprises net sales are estimated at Rs 2,398 crore with net profit at Rs 94 crore.

Glenmark Pharma may post net sales at Rs 2,642 crore, and net profit at Rs 174 crore.

Grasim Industries net sales are seen at Rs 5,040 crore, while net profit is likely to be at Rs 604 crore.

ONGC net sales are seen at Rs 24,444 crore while net profit may be around Rs 6,415 crore.

Steel Authority of India's top line is likely to be around Rs 14,190 crore, and it may post a net loss of Rs 529 crore.

November 15

The Delhi High Court has bunched all petitions seeking framing of a uniform civil code (UCC), as provided for under Article 44 of the Constitution, to promote national integration as well as gender justice, equality and dignity of women. A bench of Chief Justice D N Patel and Justice C Hari Shankar decided to hear the four petitions on November 15.

NRC faces a long winter: The Joint Forum Against NRC, a conglomerate of apolitical mass organisations, has announced a rally across Bengal to protest against the BJP-led central government's plan to carry out the National Register of Citizens exercise throughout the country. The ‘Yatra against NRC' will start from Darjeeling on November 15 and conclude at Kakdwip in South 24-Parganas on December 8 after touching a majority of the districts in the state. Former JNU students' union president Kanhaiya Kumar will flag off the yatra.

*All earnings consensus is based on Reuters estimates