INSUBCONTINENT EXCLUSIVE:
The week gone by saw the equity indices register nearly 4 per cent gain on the back of falling oil prices, some positive policy decisions
from the Reserve Bank of India and the government and hopes of hefty corporate dividends.
In the week ahead, Dalal Street could be guided by
inflation data, clarity on the coronavirus impact and the verdict of Delhi Assembly Polls.
Traders will also keep an eye on the December
quarter earnings season, which has reached its final leg
Here are factors that may guide D-Street next week:
Q3 earnings in last legIn the last week of December quarter earnings season, as many as
2,330 companies are set to announce their numbers this week, including nine Nifty firms
Bharat Forge, GAIL (India), Motherson Sumi Systems and MRF will unveil their results on Monday; 3M India and BHEL on Tuesday; PFC on
Wednesday; BPCL, Nestle India, Page Industries and Vodafone Idea on Thursday and Balkrishna Industries, Glenmark Pharmaceuticals and Steel
Authority of India on Friday.
Coronavirus scare grips marketFast increasing death toll and number of infections touching nearly 35,000,
markets are fearing more-than-expected impact of the coronavirus
Many global research agencies have downgraded their growth projections for China and the world
S-P Global Ratings has cut China's 2020 growth forecast to 5 per cent from 5.7 per cent
It said nine out of the top 10 virus vulnerable countries in Asia include India.
UBS has cut its global GDP forecast for March quarter to
0.7 per cent from 3.2 per cent in December quarter
FIIs selling equitiesForeign Institutional Investors (FIIs) were net sellers in the equity segment during the week gone by, with gross
purchases of Rs 39,499.82 crore and gross sales of Rs 40,672.38 crore, leading to a net outflow of Rs 1,172.56 crore
The outflow that comes following the Budget reflects what foreign fund managers think about market outlook
If they continue booking profit, with added fear of coronavirus, it could hurt sentiments on Dalal Street.
Inflation data to be outMarket
participants would be eyeing the data of Consumer Price Index (CPI) and Index of Industrial Production (IIP), which will be released on
Traders will also be looking forward to the Wholesale Price Index (WPI) for January, which will be released on February 14
Wholesale prices in India increased 2.59 per cent year-on-year in December 2019 from 0.58 per cent in the previous month and market
expectations of a 2.15 per cent rise.
Delhi assembly poll outcomeVote count for Delhi Assembly polls is scheduled for Tuesday
Exit polls are indicating another landslide win for the Arvind Kejriwal-led Aam Aadmi Party, which will be a setback for the Bharatiya
Janata Party, which rules at the Centre
Dalal Street will closely watch if the actual results spring a surprise.
Massive fall in oil pricesOil prices posted their fifth straight
weekly decline, as speculators have backed away due to weaker consumption figures and expectations that the coronavirus will remain a drag
Brent crude sank 6.3 per cent for the week to settle at $54.47 a barrel
Russia said it needed more time before committing to output cuts sought by other large producers, which also dragged the crude prices
number of measures that might work as a booster shot for the economy
To enable better transmission of its monetary policy, RBI introduced Long Term Repo Operation
RBI said it will conduct long-term repo operations (LTRO) from the fortnight beginning on February 15, at the policy rate
This is an attempt by the central bank to manage bond yields and push transmission of earlier rate cuts
Shorter duration government bond yields plunged on Thursday after the Reserve Bank of India announced the LTRO.