Food Inflation, Trade Data, Bharti Earnings: India Week Ahead

India will today release trade data for the month of June, while weekly food price inflation figures and monthly manufacturing output data are slated for later in the week.

India’s export growth slowed in June from a seven-year high, according to figures released last month by Rahul Khullar, the commerce ministry’s top bureaucrat. Merchandise shipments from the country rose 46.4 percent to $29.2 billion in June from a year earlier, Khullar said July 8 in New Delhi. Exports jumped 56.9 percent in May from a year earlier, the biggest gain since March 2004, according to data compiled by Bloomberg from previously reported figures.

India’s food inflation decelerated to the slowest pace since February 2009 after prices of pulses, milk, meat and fish eased. An index measuring wholesale prices of agricultural products gained 7.33 percent in the week ended July 16 from a year earlier, the commerce ministry said July 28. Data for the week ended July 23 will be released in New Delhi on Aug. 4.

The HSBC Holdings Plc and Markit Economics monthly purchasing managers’ index for July is due to be released Aug. 3. The gauge, a measure of India’s manufacturing output, stood at 55.3 in June. A reading over 50 indicates expansion.

Mahindra & Mahindra Ltd., India’s largest maker of sport-utilities vehicles and tractors, is among companies reporting first-quarter results this week. The company is scheduled to report today.

Power Grid Corp. of India Ltd., the nation’s biggest transmission company, will report on Aug. 2, while Bharti Airtel Ltd., the nation’s biggest mobile-phone service provider, and Hindustan Copper Ltd., India’s monopoly miner of the metal, will report on Aug. 3. Indian Hotels Co., operator of the Taj Group of Hotels, will report Aug. 4.

Stocks, Rupee

Indian stocks had their biggest monthly decline since January amid concern the U.S. won’t reach an agreement on raising its federal debt limit in time to avoid a default, and on speculation domestic interest rises will erode corporate earnings and slow growth.

The Bombay Stock Exchange Sensitive Index, or Sensex, retreated 3.4 percent in July, its biggest slide since the 11 percent loss in January. Jaiprakash Associates Ltd., a builder of dams, roads and bridges, and Bharat Heavy Electricals Ltd., biggest power-equipment maker, were the biggest loser this month.

India’s rupee had its biggest monthly gain since March after foreign funds pumped cash into the nation’s assets to take advantage of its yield advantage over developed countries. The rupee strengthened 1.1 percent in July to 44.19 per dollar, according to data compiled by Bloomberg. It rose 0.4 percent last week.

India’s 10-year government bonds completed the worst week in almost seven months after the central bank raised interest rates last week, making it more expensive to buy debt with borrowed funds. The yield on the 7.8 percent debt due April 2021 rose this week by 14 basis points, or 0.14 percentage point, to 8.45 percent, according to central bank data. Earlier, it touched 8.48 percent the highest level for a benchmark note since September 2008.

Mahindra and Mahindra Ltd. earnings                Aug. 1
Pfizer Ltd. earnings                               Aug. 1
GlaxoSmithKline Consumer Healthcare Ltd. earnings  Aug. 1
Sun TV Network Ltd. earnings                       Aug. 1
DLF Ltd. earnings                                  Aug. 2
Power Grid Corp. of India Ltd. earnings            Aug. 2
Future Capital Holdings Ltd. earnings              Aug. 2
United Breweries Ltd. earnings                     Aug. 2
McDowell Holdings Ltd. earnings                    Aug. 2
Tata Steel Ltd. shareholders meeting               Aug. 3
Bharti Airtel Ltd. earnings                        Aug. 3
United Spirits Ltd. earnings                       Aug. 3
Hindustan Copper Ltd. earnings                     Aug. 3 Indian
Hotels Co. earnings                         Aug. 4 Ranbaxy
Laboratories Ltd. earnings                 Aug. 5
Great Eastern Shipping Co. earnings                Aug. 5
Solvent Extractors Association conference          Aug. 5
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