edited by: Namit Singh Sengar
Last Update: February 06, 2023, 08:25 IST
A man on the street looks at a screen displaying the Sensex on the façade of the Bombay Stock Exchange (BSE) building in Mumbai (File photo/Reuters)
In its December monetary policy review, the central bank raised the key benchmark interest rate (repo) by 35 basis points (bps).
Analysts said equity markets will focus on RBI interest rate decision scheduled this week, while investors will also be tracking Q3 earnings, global trends and foreign fund trading activity.
Brent crude oil prices and rupee-dollar movement will also drive the market trend.
Pravesh Gaur, senior technical analyst at Swastika Investmart, pointed out that the RBI policy, the outcome of which is scheduled for February 8, will be an important domestic event. PTI,
This week will see the release of third quarter earnings from companies such as Bharti Airtel, Hero MotoCorp, Hindalco and Mahindra & Mahindra as well as macroeconomic data from the United States.
Industrial production data for December is due after the market closes on Friday.
“We expect volatility to remain high this week as we have important events and data lined up. Firstly, participants will be eyeing the outcome of the RBI policy meeting to be held on February 8. On the economy front, the IIP data will be released on February 10. PTI said Ajit Mishra, VP – Technical Research, Religare.
On the earnings front, major corporations such as Tata Steel, Adani Ports, Ambuja Cement, Bharti Airtel, Hero MotoCorp, Hindalco, Lupine and M&M along with many others will announce their numbers during the week.
In its December monetary policy review, the central bank raised the key benchmark interest rate (repo) by 35 basis points (bps) after giving three back-to-back hikes of 50 bps each.
With retail inflation showing signs of softening and the US Fed reducing the pace of its benchmark interest rate hike RBI is likely to settle For a modest increase in the repo rate by 25 basis points in its upcoming bi-monthly monetary policy.
Kotak Institutional Equities said in a report that the global inflation environment is gradually softening, although inflation is still well above the target of each central bank. Inflation is expected to soften further in the next few months, ending the rate hike cycle by the first half of 2023 and allowing for a rate cut in late 2023/early 2024.
Since May last year, the RBI has increased the short-term lending rate by 225 basis points to control inflation, driven mostly by external factors, especially the global supply chain disruption following the outbreak of the Russia-Ukraine war.
For the week ended February 3, the 30-share BSE benchmark jumped 1,510.98 points or 2.54 per cent.
Speaking at the 22nd FIMMDA-PDAI Annual Conference recently, RBI Governor Shaktikanta Das said that with some easing of Covid-related restrictions in various countries and a reduction in inflation, though still high, central banks have decided to lower rates And started acting as a pivot. rise or fall.
(With inputs from PTI)
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