RBI monetary policy, December quarter results and global cues are some of the major themes that are likely to sway investor sentiment during the week. This apart, stock-specific actions will also play a key role.
Chances of a rate cut in the Reserve Bank of India’s (RBI’s) February monetary policy (Feb 5-7) are almost ruled out because the Budget is inflationary in nature, say economists. Though a section in the market still expects a rate cut, the rise in bond yields after the Budget points to a different direction.
On the corporate earnings front, companies such as Coal India, IDBI Bank, Indian Overseas Bank, Tech Mahindra, GAIL, HPCL, ACC, BHEL, Punjab National Bank, Oriental Bank of Commerce, IDFC First Bank, DLF, Apollo Tyres, Tata Global and Dish TV, Lupin, Cipla, Tata Motors, Britannia, Mahindra & Mahindra and NHPC, are expected to unveil their December quarter results during this week
STOCKS TO WATCH
Reliance Communications (RCom): the Anil Ambani-led debt-ridden Reliance Communications (RCom) board decided on Friday to take the firm to the bankruptcy court. The telco informed the exchanges on Sunday that it plans to propose a similar debt resolution plan in the tribunal as was being earlier pursued with creditors.
Dr Reddy's: The drug major on Friday registered a 45 per cent increase in its profit after tax for the quarter ended December 31 at Rs 485 crore against Rs 334 crore in the third quarter of FY18.
Jet Airways: Jet Airways Chairman Naresh Goyal is putting in around Rs 250 crore in the airline as he negotiates a resolution plan with partner Etihad Airways. The airline’s finances have been stretched for the last few months and it has been making part payment to a section of employees and its vendors.
RUPEE
The Indian rupee Friday weakened by 17 paise to close at 71.25 against the US dollar as concerns related to fiscal slippage weighed on the sentiment after the interim budget unveiled some big populist measures ahead of the general elections.
GLOBAL MARKETS
Asia stocks were barely moved 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. MSCI’s broadest index of Asia-Pacific shares outside Japan was basically unchanged, capped below the four-month peak scaled on Friday. At 06:45 am, Nifty futures on Singapore Exchange (SGX) traded 21 points or 0.19 per cent lower at 10,890.50 levels.
Wall Street ended mixed on Friday, as optimism from a surge in January US job growth was offset by a weaker-than-expected outlook from Amazon.com Inc that battered retail stocks.
Naresh Goyal to infuse around Rs 250 crore into debt-ridden Jet Airways
Jet Airways Chairman Naresh Goyal is putting in around Rs 250 crore in the airline as he negotiates a resolution plan with partner Etihad Airways.
The airline’s finances have been stretched for the last few months and it has been making part payment to a section of employees and its vendors. Fresh funds would help the airline clear its outstanding dues.
The airline had promised to pay 75 per cent of November salary to pilots and engineers by January-end, but has paid only 50 per cent to date. National Aviator’s Guild and the pilots union will be meeting on Monday to discuss the further course of action. Lessors, too, have been threatening action over unpaid dues.
Goyal owns 51 per cent in the airline and is currently in Abu Dhabi to finalise a resolution plan. The interim funding of Rs 250 crore would be critical before the airline restructures its debt and gets fresh capital infusion from Etihad and lenders.
Interim Budget reduces RBI rate cut possibility in February, say economists
Chances of a rate cut in the Reserve Bank of India’s (RBI’s) February monetary policy are almost ruled out because the Budget is inflationary in nature, say economists.
Though a section in the market still expects a rate cut in February, the rise in bond yields after the Budget points to a different direction.
Yields rise, or prices of bonds fall, on oversupply of bonds and on expectations of hardening interest rates.
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.
For the next year also, the deficit is projected at 3.4 per cent, deviating from the path to bringing down the deficit to 3 per cent of GDP.
 "RBI policy, Q3 results and global cues to influence markets this week")
