July 2024 holds significant importance for the Indian stock market, as it gears up for pivotal events such as the Union Budget, the progression of the monsoon, and the onset of the Q1 FY24-25 earnings season.
Here’s a look at the key events expected in the first week of July that investors will closely monitor and which could significantly influence the market dynamics.
1st week of July – Automobile Industry will Release Monthly Sales Data
The automobile industry in India announces its monthly sales figures in the first week of each new month. This data is closely monitored, providing valuable insights into the sector’s performance and trends.
Each major automaker, including Maruti Suzuki, Hyundai, Mahindra, Tata, and others releases their domestic wholesale and retail sales numbers for the previous month. These figures cover passenger vehicles, commercial vehicles, two-wheelers, and sometimes electric vehicles (EVs).
This automobile sales data offers a real-time snapshot of consumer demand, market share shifts, and the overall health of the automotive market and influences market movements.
July 1st – HSBC India PMI Manufacturing for June 2024
The HSBC India Manufacturing PMI is a monthly survey that provides an overview of the manufacturing sector’s performance in India.
The Purchasing Managers’ Index (PMI) is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
It is a diffusion index that varies between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month.
The June 2024 PMI reading is expected to provide insights into the health of the Indian manufacturing sector in the first month of the new fiscal year. It will indicate whether manufacturing activity expanded, contracted or remained unchanged compared to May 2024.
The June PMI will be an important data point as it comes right after India’s inclusion in the JP Morgan Bond Index on July 1st. The PMI reading could influence investor sentiment and market expectations around the economic outlook.
July 2nd – CDSL will issue a bonus issue
According to the recent regulatory filings with the NSE, a Board meeting of Central Depository Services (India) Limited (CDSL) is scheduled to be held on 2nd July to consider the proposal for bonus issue.
CDSL is Asia’s only listed depository that provides convenient, dependable and secure depository services at affordable cost to all market participants.
July 3rd – HSBC India PMI Services for June 2024
The HSBC India Services PMI is a monthly survey that provides an overview of the performance of the services sector in India. It is compiled by S&P Global from responses to questionnaires sent to purchasing managers in around 350 private service sector companies.
The June 2024 PMI reading will indicate whether services activity expanded, contracted or remained unchanged compared to May 2024. A reading above 50 suggests an overall increase, while below 50 indicates a decrease.
The June services PMI is expected to build on the momentum from May 2024, when the index edged up to 60.4 from 60.2 in the previous month. This marked the 35th consecutive month of growth in services activity.
The June services PMI, along with the manufacturing PMI released on July 1st, will feed into the composite PMI which gives an overall view of private sector activity in India.
Written by Shivani Singh
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