Market Watch This Week: HCL to Share Results on April; corporate actions, RBI policy and IPOs

Mumbai, April 6:India Inc.’s earnings season kicks off this week, setting the stage for what is expected to be a guidance-driven start to the March quarter, even as a packed lineup of corporate actions, macro data releases, and monetary policy decisions keeps markets busy.

The spotlight will initially be on the IT sector, with Tata Consultancy Services, Infosys and HCLTech scheduled to report results starting April 9. Analysts expect a muted performance, with revenue and profit growth of around 10% year-on-year, largely supported by currency tailwinds rather than strong demand. Constant currency growth is likely to remain subdued amid cautious global tech spending.

While only a handful of companies will report this week, these early results are crucial as management commentary and forward guidance tend to shape broader earnings expectations.

Initial signals already suggest a mixed sectoral outlook—with Bank of Baroda reporting robust growth in business and deposits, indicating resilience in financials, even as IT faces headwinds. This divergence could lead to sector-specific market moves in the near term.

Alongside earnings, corporate actions are expected to dominate stock-specific activity. Data from the Bombay Stock Exchange calendar shows a busy pipeline of board meetings, capital-raising plans, and shareholder-focused decisions between April 6 and April 10. Early in the week, companies such as Sharp Chucks and Machines and Agarwal Toughened Glass are set to evaluate fund-raising options, while AVG Logistics is proceeding with a rights issue, signalling continued demand for equity funding.

Buyback activity is also in focus, with Aurobindo Pharma slated to consider a share repurchase. As the week progresses, attention shifts to financial disclosures, with companies like Sameera Agroand Sterling Power expected to announce results, while Anand Rathi Wealth and GM Breweries will release quarterly numbers on April 9.

Mid-week developments include capital restructuring moves. Pakka will consider a preferential issue, while Alka India is set to review audited results alongside a final dividend and bonus issue. Towards the latter half of the week, liquidity-enhancing actions take centre stage, with Le Merite Exports planning a stock split and F Mec International considering a bonus issue. Dividend and rights activity in names like Varun Beverages and Gravity India further reinforces the theme of capital returns and restructuring.

On the macro front, the Reserve Bank of India’s Monetary Policy Committee will conclude its meeting on April 8. The central bank is widely expected to hold the repo rate at 5.25% and retain a neutral stance, though commentary on the future rate trajectory will be closely tracked amid rising expectations that rate cuts may be delayed.

Key economic data is also due, including bank credit and deposit growth figures and foreign exchange reserves data. Forex reserves have declined by over $40 billion from their late-February peak to around $688 billion, reflecting RBI intervention in the currency market amid global volatility.

Meanwhile, primary market activity remains subdued. PropShare Celestia’s ₹245-crore IPO will open on April 10, while the ₹48-crore SME issue from Safety Controls & Devices opens earlier in the week, highlighting a cautious IPO environment.

Overall, while indices may remain sensitive to global cues, the real action this week is likely to unfold through earnings signals, boardroom decisions, and stock-specific triggers.