05/02/2022
Week Ahead – Focus on RBI Credit Policy …10-Year G-Sec Yield Nearly 2-year High ….Oil not Well
Weekly Update
· Equity benchmarks logged gains for the week, after two consecutive weeks of decline, amid rising concerns over tapering and volatility in global equities. Sensex and Nifty gained in the first three days of the week (including on the day of union budget 2022, Feb. 1). Over the last two sessions, the benchmarks fell, amid rising volatility due to tech selloff in the U.S. (poor quarterly results announced by Facebook) and concerns over hawkish tilt to monetary policy framework by the U.S. Federal Reserve. Nifty climbed up by 414 points (2.4%) to close at 17516 and Sensex advance 1445 points or 2.5% to close at 58645. Nifty Metal Index witnessed biggest gainer this week and climbed up by 7% against the previous week. Nifty PSU Bank, pharma, IT, realty, private banks, NBFC and FMCG Index soared 2-4%. Sentiment boosted after the Finance Ministers announced growth oriented 2022-23 Union Budget. Budget is very balanced and continues the incremental growth-oriented approach. The finance minister provided a springboard for an investment cycle with the highest ever share of capex (35% rise), focus on the development of national manufacturing capabilities, digitization and clean energy, tax rationalisation with no new taxes while maintaining its continuous growth focus on Aatmanirbhar Bharat. Moreover, strong quarterly results added fuel in the market sentiment.
Week Ahead
· Next week, RBI will announce credit policy on 9th Feb (Wednesday). 10-Year G-Sec Yield has spiked to nearly 2-year high at 6.88% ahead of RBI credit policy outcome. Market fear the spike in crude prices (above $93/bbl – 7-year high) can not only stoke inflation but also impact the country's trade and fiscal deficits. BoE hiked interest rate by 25bps this week and the US Fed likely to announce hike in interest by next month (March). Surging crude oil prices and its impact on domestic inflation have put the spotlight on possible RBI moves at the meeting of the apex bank's rate-setting body next week. Finance Minister earlier this week announced plans to increase capital spending by 35% to Rs7.5trillion ($100 billion) in the next financial year, seeking to bolster the economy’s recovery after disruptions from the pandemic. On the earnings front, out of the 34 Nifty 50 companies that have announced results so far, 18 either met or exceeded analyst estimates, 14 missed. SBI numbers and the upcoming RBI monetary policy review will also be on the radar. Their commentary on inflation and economic growth will be key factors to watch amid the hawkish stance from the US Fed. Expects Nifty range between 17850 to 17150 (close 17516). Trader focus on interest sensitive sectors like Auto, banking and Finance and Realty stocks ahead of RBI policy meeting. Stocks are looking attractive like ONGC, Hindalco, Infosys, Tata Consumers, Titan, Sun Pharma, Axis Bank, ICICI Bank, AU Bank and Nalco
Global markets
· US Market – For the week, the Dow gained about 1.1%, the S&P 500 rose 1.6% and the Nasdaq climbed 2.4% after investors digested a much stronger-than-expected January jobs report that underlined expectations for an aggressive round of rate increases by the Federal Reserve. The strong January reading served to reinforce expectations the Federal Reserve will be aggressive in lifting interest rates and taking other steps to pullback on monetary stimulus as it attempt to rein in the highest inflation in decades.
· European market – UK Index gained nearly 1% while the Stoxx Europe 600 index fell 1.3% and was poised for a 0.7% drop for the week. The Bank of England, meanwhile, made the first set of back-to-back interest rate hikes since 2004, hiking rates 0.25% due to a tight labor market and rising inflationary pressures. The central bank last hiked in December.
FIIs and DIIs
· FIIs were net sellers this week Rs7695cr
· DIIs were net buyers this week Rs5924cr
Commodity
· Brent Crude - Oil prices surged 3% to close above $93/bbl to fresh seven-year highs on Friday, built on ongoing worries about supply disruptions fuelled by frigid US weather and ongoing political turmoil among major world producers.
· Gold - Gold headed for weekly gains by 1% to above $1800/ounce mark as the dollar weakened ahead of a key jobs report that may impact the outlook for the Federal Reserve’s monetary policy.
Global data
· US – Tuesday – Consumer Credit and Trade balance. Wednesday – Mortgage Application and Wholesale Inventories. Thursday – CPI, Initial jobless claims. Friday – Monthly Budget statement
· Europe – Monday – IIP (Germany), Tuesday – Current account balance and Trade Balance (France). Wednesday – Trade balance and Current account balance (Germany), Bank of France statement (France), Thursday – House price index (UK), Industrial Production (France), Industrial production (Germany). Friday – Current account balance, CPI, WPI (Germany). IIP, Quarterly GDP, Export and import (UK).
· China – Service PMI, Composite PMI (Monday). Wednesday – Money Supply. Friday – Current account balance
· India – Wednesday – RBI Credit Policy. Friday – IIP.
Corporate Results
· Monday - Castrol, Glaxosmiithkline, Indian Bank, Indo-count, Jindal Stainless, KPR Mills, JM Finance, Nalco, Phoenix Mills, SH Kelkar, TVS Motor, Union Bank and WPIL
· Tuesday – Aster DM, Bajaj Electric, Bata India, Bharti Airtel, BSE, BSL Ltd, Endurance, EID Parry, Escorts, Godrej Consumers, Granules, Greaves Cotton, IGL, Glenmark Pharma, Gujarat Gas, Gujarat Alkalies, Hedelberg Cement, IRCTC, JK Infra, JBM Auto, Jindal Steel, MGL, NCC, OnMobile, Praj Industries, rities, Shilpa Medicare, Stove Kraft, TRF, Urgo Capila
· Wednesday – Abbott India, ACC, Aurobindo Pharma, BASF, Bosch, DCB Bank, EPL, FDC, Finolex Cable, GMR Infra, HEG, Jindal Hisar, P&G, Tata Power and Tata Global
· Thursday – ABB India, Ageis Logistic, Alembic Pharma, BEML, Bharat Forge, Bharat Rasayan, CAMS, Career Point, Carborundum Universal, Cummins India, Dr Lalpath Labs, Everest Industries, Heromoto Corp, Hindalco, Indian Hume Pipe, IRFC, M&M, Lemon Tree, MRF, MTAR Tech, NMDC, Quess Corp, SJVN, Strides Pharma, Tata Chemical, Trent and Wonderala
· Friday – Ashok Leyland, Chola Finance, Divi’s Lab, Glenmark Pharma, Godrej Industries, HUDCO, IDFC, ITD Cementation, IFCI, ITI, MOIL, MSTC, Oil India, Sobha, Voltas, Ujjivan Finance, Suprajit, TN News Print, UCAL Fuel.
· Saturday – Andhra Sugar, Galaxy Surfacta, Max Healtcare, ISGEC Heavy Engineering, Sun TV, PNC Infra, Ramco Systems and TVS Shrichakra
Corporate Action
· Monday – Ex-dividend – Exide Industries Rs2, Control Print Rs4, Route Mobile Rs3, Kewal Kiran Rs4, Coforge Rs13, KEI Industries Rs2.50
· Tuesday - Schaeffler India stock split from Rs10 to Rs2, Gravita Rs3, NIIT Ltd Rs3, Shriram Piston Rs6, HIL Rs20, Blue Dart Rs25.
· Wednesday – Sun Pharma Rs7, IOC Rs4, BEL Rs1.5
· Thursday – Greenlam Industries stock split from Rs5 to Re1, Dhanuka Agritech Rs10, TTK Prestige Rs2.50, BPCL Rs5.
Best Regards,
we provide service to invest in right share and mutual fund to get gud return . Gud return in 10 tra
