New Delhi : The Reserve Bank of India’s policy review meet on Tuesday and the next batch of quarterly earnings from blue-chips like Bajaj Auto, Lupin, Indian Oil and Tata Steel would set the tone for the stock market this week.
The RBI is likely to keep interest rates unchanged at its sixth bi-monthly monetary policy on Tuesday in the backdrop of recent volatility in financial markets, and the impending Union Budget for 2016-17 (Apr-Mar).
“All eyes will be on the outcome of RBI’s policy review; macroeconomic data, next batch of December quarter corporate earnings, sentiments in global markets, movement of rupee against the dollar and crude oil price will dictate the trend,” said Vijay Singhania, Founder-Director, Trade Smart Online. The count-down to the Union Budget 2016-17 has begun with investors now building up expectations across sectors.
Overseas investors pulled out more than Rs 11,000 crore from the Indian stock markets in January — the highest net outflow in five months — on global growth worries and decline in oil prices. Russia’s meeting with the Organization of the Petroleum ExportingCountries will also be in focus, as crude oil prices are expected to gain further if major oil producers decide to cut production to overcome supply glut.
“The focus, going ahead will be on the remaining quarterly numbers and then the budget,” said Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities. Shares of auto companies would be in focus amid monthly sales data announcement from Monday.
For the week gone by, the BSE 30-shares key index Sensex rose by 435 points or 1.78 per cent to 24,870.69.
