RBI interest rate decision, third quarter earnings drive market trends this week: Analysts

Analysts said the focus of equity markets will shift to the Reserve Bank of India’s interest rate decision due this week, as investors also track ongoing third-quarter earnings, global trends and foreign money trading activity, for more clues.

Brent crude prices and the movement of the rupee against the dollar will also lead the trends in the market.

“The trend of the US market will be closely watched, but the influx of fisheries companies will be crucial because they have been selling heavily in the Indian market since the beginning of 2023, and it intensified after the Adani group crisis.

“This week will see the release of third-quarter earnings from companies like Bharti Airtel, Hero MotoCorp, Hindalco, and Mahindra & Mahindra as well as macro data from the US. RBI policy, whose outcome is due on February 8, will be crucial,” said Pravesh Gore. , Senior Technical Analyst, Swastika Investmart Ltd.

Shares of the Adani Group took a hit on the stock exchanges after US-based Hindenburg Research made a series of allegations in a report, including fraudulent transactions and share price manipulation in the Gautam Adani-led group.

The Adani Group has dismissed the accusations as lies, saying it complies with all laws and disclosure requirements.

Industrial production data for December is due for release after market hours on Friday.

“We expect volatility to remain high this week as we have important events and data. Firstly, participants will look forward to the outcome of the RBI policy meeting scheduled for February 8th. On the economic front, IIP data will be revealed on February 10th.” Ajit Mishra, Vice President – Research Tech, Religare, said.

On the earnings front, big companies like Tata Steel, Adani Ports, Ambuja Cement, Bharti Airtel, Hero Motocorp, Hindalco, Lupine and M&M will announce their figures for the week along with many others.

“This week, one of the key factors in the domestic market will be the RBI’s interest rate decision and its commentary on future interest rate actions,” said Vinod Nair, Head of Research at Geojit Financial Services.

In December’s monetary policy review, the central bank raised the key interest rate (repo) by 35 basis points after delivering three consecutive increases of 50 basis points.

Since May last year, the Reserve Bank has raised its short-term lending rate by 225 basis points to contain inflation, mostly driven by external factors, especially global supply chain disruption in the wake of the outbreak of war between Russia and Ukraine.

For the week ending February 3, the 30-share BSE benchmark index jumped 1,510.98 points, or 2.54 percent.

“The local market displayed all the excitement in an eventful week and swung with huge fluctuations between gains and losses. The Adani saga caused huge turmoil during the week,” said Nair.

(Only the title and image for this report may have been reworked by the Business Standard staff; the rest of the content is generated automatically from a shared feed.)

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