Some of the major factors that are likely to influence market this week includes global cues, corporate earnings of some key companies and RBI policy. Apart from this stock-specific actions will also play a key role.
Reserve Bank of India’s (RBI’s) February monetary policy holding from Feb 5 to 7, where predictions are built up for a rate cut, now investors are cautious on their expectation as the Budget is inflationary in nature and that may impact the rate cut decision. Though a section in the market still expects a rate cut, the rise in bond yields after the Budget points to a different direction. The government once again missed the fiscal deficit target, registering a deficit of 3.4 per cent of gross domestic product (GDP) from the 3.3 per cent projection.
Companies expected to declare their December quarter results during this week includes ACC, BHEL, Coal India, IDBI Bank, Indian Overseas Bank, Tech Mahindra, GAIL, HPCL, DLF, Apollo Tyres, Tata Global Punjab National Bank, Oriental Bank of Commerce, IDFC First Bank, Dish TV, Lupin, Cipla, Tata Motors, Britannia, NHPC and Mahindra & Mahindra.
Asia stocks were mixed on Monday, staying near a four-month high after Wall Street’s tepid pre-weekend performance, while the dollar was supported against the yen following strong US jobs and manufacturing data.