Corporate earnings, IIP data in focus

First quarter June 2012 corporate earnings and macroeconomic data may dictate near term trend on the bourses. The government will announce data on index of industrial production (IIP) for May 2012 on Thursday, 12 June 2012. The next major trigger for the stock market is Q1 June 2012 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result, which could cause revision in their future earnings forecast of the company for the current year or the next year. A deceleration in top line growth of India Inc amid economic slowdown and slowdown in investment cycle will weigh on bottom line growth in Q1 June 2012 as the core operating profit margin could be negatively impacted by deceleration in top line growth. HDFC announces Q1 results on 11 July 2012. IT heavyweights, Infosys and TCS unveil Q1 results on 12 July 2012. HDFC Bank declares its Q1 results on 13 July 2012. Axis Bank announces Q1 results on 17 July 2012. Bajaj Auto reports Q1 results on 18 July 2012. Kotak Mahindra Bank and Dr Reddy's Laboratories unveil Q1 results on 19 July 2012. Asian Paints announces Q1 results on 20 July 2012. ICICI Bank announces Q1 results on 27 July 2012. Maruti Suzuki India announces Q1 results on 28 July 2012. Mahindra & Mahindra announces Q1 results on 8 August 2012. Ranbaxy Laboratories announces Q2 June 2012 results on 9 August 2012. Investors will closely watch how the monsoon progresses. The June-September rains were 49% below average in the week to 4 July 2012, widening the 18% shortfall in the previous week. Between 1 June and 4 July 2012, rains were 30% below average. Rains revived over cane, oilseeds and cotton areas of India's western region. The monsoon rains--which make up around 70% of India's annual rainfall--are crucial to the nation's agriculture sector and broader economy. More than 60% of the country's farmland is rain-fed. The timing, distribution and quantity of rainfall are all important for crops. In the global market, investors will keenly watch the all-important US jobs data due on Friday, 6 July 2012. Media reports suggest that a weak US jobs data could trigger third round of quantitative easing, or QE3. Important Chinese economic data is due over the next few days. During a five-day period from 9 to 13 July 2012, China will unveil data on second quarter gross domestic product, data for June 2012 on fixed-asset investment, inflation, industrial production and bank lending.