Investors’ Focus Turns To RBI Rate Decision

Now, the major Union Budget is behind us, and it appeared as a non-event, but practically speaking, FIIs participation was very minimal. So, the actual reaction is likely to be witnessed on Monday. Hence, we need to wait for a day or two to understand whether the market has really discounted the Budget factor or not, said Osho Krishnan, sr analyst (technical & derivatives), Angel One

New Delhi: RBI’s interest rate decision, quarterly earnings and global cues would be the major driving factors for equity markets this week, analysts said adding that the impact of the Union Budget could linger on this week. Trading activity of foreign investors will also be a key driver for the markets, experts noted.

“US and India’s manufacturing PMI for January to be released on Monday, will be the key macro data to watch out for. Investors will closely study the fine prints of the Budget policies and market focus will shift back to the corporate earnings/outlook and RBI’s interest rate decision to be announced on Friday,” Siddhartha Khemka, head (research), Wealth Management, Motilal Oswal Financial Services Ltd.

From the earnings calendar, Asian Paints, PC Jeweller, Tata Power, Titan, Apollo Tyres, Bharti Airtel, ITC,F, SBI, LIC, M&M and NHPC would announce their earnings this week. Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said: “Will the RBI soften its stance and announce any rate cut in this week’s credit policy that would be interesting to watch out for? However, investors need to watch out for global developments, as any uptick in US bond yields and FII selling could dampen sentiment.”

PMI data for the manufacturing and services would also be tracked by investors. “As we look to this week, there are several important events on the horizon, including the MPC outcome, the Delhi state election, and developments regarding US tariffs. These events present an opportunity for market participants to remain engaged and informed, as they are likely to introduce some volatility,” added Osho Krishnan, sr analyst (technical & derivatives), Angel One.