Market participants will keep an eye on the movement of the rupee against the dollar and crude oil prices, Gour said | Photo: Bloomberg
Stock markets will be driven by index majors’ quarterly profits, global trends and the RBI’s interest rate decision this week, after digesting news on budget proposals and the outcome of US federal policy, analysts say.
The trading activity of foreign investors and the movement of the global oil benchmark Brent crude would also dictate the trends in stocks.
“On the domestic front, the MPC (Monetary Policy Committee) meeting is scheduled for February 6 to 8. The third quarter earnings season will continue to be the focus. Bharti Airtel, Power Grid, Nestle, Lupine and Tata Power will announce their results. this week,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Market participants will keep an eye on the movement of the rupee against the dollar and crude oil prices, Gour said.
Investments by foreign institutional investors (FIIs) and domestic institutional investors (DIIs) will also be monitored, he added.
“With the US Fed and interim budget out of the way, all eyes will be on the RBI policy meeting this week,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
Last week, the benchmark BSE rose 1,384.96 points or 1.95 percent, and the Nifty rose 501.2 points or 2.34 percent. On Friday, the Nifty touched its lifetime peak of 22,126.80.
The market focus will be on the ongoing earnings season for Q3 FY24 with many companies announcing their results in the coming days such as Ashok Leyland, Bharti Airtel, Apollo Tyres, Nestle, Grasim, LIC, said Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.
“The market will react to key domestic and global economic data, crude oil inventories, FII/DII investment patterns and the movement of the rupee against the dollar. Economic data will impact the market such as S&P Global Services PMI of countries like India, UK, US, initial unemployment claims, China’s inflation numbers and India’s interest rate decision,” Nanda added.
The tone has been largely positive this past week, amid favorable global cues and purchasing of select heavyweights.
“We expect volatility to remain elevated this week as well and the focus will be on earnings and RBI meeting. On a global front, the steady uptrend in US markets will continue to favor the bulls,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: February 4, 2024 | 10:17 am IST