Outlook: MPC, Macros to Manoeuvre Equities


By Rohit Vaid

Mumbai, Feb 6 (IANS): The RBI's upcoming monetary policy review along with quarterly earnings results as well as the release of key macro economic data points will steer Indias key equity indices during the next trade week.

Besides, direction of foreign fund flows, as well as concerns over rising crude oil prices will influence investors' sentiments.

Notably, the monetary policy review is slated for February 7-9.

It is widely expected that RBI's MPC will maintain a status-quo in the key lending rates.

At present, the MPC of the central bank has maintained the repo rate, or short-term lending rate, for commercial banks at 4 per cent.

"The coming week will see the outcome of the RBI MPC meet on February 9, and expectations ahead of it and reactions to the outcome could drive markets," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Nifty could remain in the 17,374-17,879 band over the next few days."

According to Vinod Nair, Head of Research at Geojit Financial Services: "In the coming week, RBI's policy meeting will be the major event awaited by the domestic investors.

"RBI may begin its policy tapering with an increase in reverse repo rate and keeping repo rate unchanged."

Furthermore, investors will keenly track the upcoming Q3FY22 quarterly earnings results.

The week ahead will see the release of corporate results from Abbott India, ACC, Engineers India, Power Grid, SAIL, Tata Power amongst others.

"Q3FY22 earnings has been good so far as companies largely delivered on the earnings front, despite the unprecedented inflationary pressures," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

"The earnings delivery is highly crucial, in a rising rate regime which is getting well reflected in the market with poor performers getting battered severely."

In addition, macro-economic data such as the Index of Industrial Production (IIP) for December, mutual fund investments numbers and automobile retail figures are expected to be released week starting February 7.

 

  

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Title: Outlook: MPC, Macros to Manoeuvre Equities



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