Business in the Week Ahead: August 28 to September 1, 2023

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Image Source: Bloomberg Quint

As August approaches its conclusion, the month has witnessed a resurgence in the primary market. Several companies, a minimum of five, have effectively concluded their initial public offerings (IPOs) during this month (excluding SME IPOs). While one public offering is presently active, there are expectations for two additional IPOs to make their debut on the market next week. Both Pyramid Technoplast and Aeroflex Industries, which garnered positive responses from investors for their IPOs, are likely to be listed on the stock exchanges.

The economic outlook for India hinges on the GDP figures for the June 2023 quarter and the S&P Global India Manufacturing Purchasing Managers’ Index (PMI) data for the month of August. Moreover, prominent automobile companies are poised to unveil their wholesale dispatch numbers for August.

Turning our attention to the global arena, crucial data points include China’s manufacturing PMI, economic sentiments and inflation in the Euro Area, US corporate profits, consumer spending, housing prices, and employment indicators.

Let’s delve into the key events for the upcoming week:

Monday, August 28:

Euro Area Money Supply: The European Central Bank is scheduled to release the M3 money supply data for July in the Euro Area. Additionally, updates on bank lending to both companies and households will be made available.

Tuesday, August 29:

Corporate Results: Gillette India will disclose its financial results.

IPO: CPS Shapers will initiate its public offering for subscription, setting the offer price at Rs 185 per equity share.

Germany Consumer Confidence: A slight improvement in consumer morale is anticipated for September. The GfK Consumer Climate indicator showed positive movement leading into August, accompanied by a softening of inflation.

US Job Openings, Home Prices: The US is poised to release job openings data for July. This data is noteworthy as job openings exhibited a decline in the sequential month of June 2023. Simultaneously, the housing prices data for June will also be unveiled. Notably, the S&P CoreLogic Case-Shiller 20-City Composite home price index experienced a decline for the third consecutive month in May.

Wednesday, August 30:

IPO: Rishabh Instruments will commence its public offering for subscription, featuring an offer for sale by promoters alongside a fresh issuance of equity shares.

IPO Listing: The shares of Pyramid Technoplast are anticipated to be listed on stock exchanges following its well-received IPO.

Euro Area Economic Sentiments: Economic sentiments within the Eurozone are expected to remain subdued in August. The economic sentiment indicator saw a downward trend for a third successive month in July, primarily influenced by tightening monetary policies.

US Corporate Profits: The projection indicates a sequential decline in corporate profits for the US in the June 2023 quarter. This comes in the wake of profit declines observed in the first quarter of the 2023 calendar year due to tightening monetary policies.

Thursday, August 31:

India’s GDP, Government Budget Value: The year-on-year GDP growth is predicted to gain momentum in the June 2023 quarter, building on the 6.1 percent expansion observed in the March 2023 quarter. Additionally, the government will unveil income and receipts data for April to July 2023. During this period, there was an uptick in the fiscal deficit attributed to a moderation in government receipts.

IPO Listing: Shares of Aeroflex Industries are poised to be listed on stock exchanges after garnering bids that were 97 times the shares offered.

China Manufacturing PMI: The official NBS Manufacturing PMI for China is anticipated to remain below 50, indicative of a contraction in factory activity. This comes as factory activity experienced a decline for the fourth consecutive month in July.

Euro Area Inflation: The trend of easing inflationary pressures in the Eurozone is anticipated to persist in August. July witnessed consumer price inflation dropping to its lowest level since January 2022, primarily due to reduced energy prices.

US Personal Income, Spending, Jobless Claims: Data on jobless claims for the week ending August 26 will be released by the US. Notably, the number of Americans filing for unemployment benefits decreased in the week ending August 19. Furthermore, the personal income and spending data for July will also be unveiled.

Friday, September 1:

Automobile Sales: Auto manufacturers are set to release sales figures for August 2023. The industry is observed to be accumulating inventories in anticipation of the festive season. While two-wheeler dispatches showed lag in July, the passenger vehicle segment exhibited year-on-year growth.

India Manufacturing PMI: Despite a projected moderation in the pace of expansion on a sequential basis for August, manufacturing activity is expected to sustain growth in India. The S&P Global India Manufacturing PMI slightly receded to 57.7 in July.

Board Meeting: On September 1, the board of EIH is scheduled to convene to deliberate and sanction the company’s forthcoming plans.

US Unemployment Rate, Manufacturing PMI: The unemployment rate in the US is anticipated to remain stable in August within the context of a tight labor market. ISM Manufacturing PMI might show improvement in August, albeit still indicating contraction in factory activity with an overall reading below 50.


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