Market Ahead Podcast, Oct 11: Factors that could guide markets this week
As markets digest the Reserve Bank of India's monetary policy outcome, focus will now shift to corporate earnings and macroeconomic data
BS Web Team New Delhi
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As markets digest the Reserve Bank of India’s monetary policy outcome, focus will now shift to corporate earnings and macroeconomic data.
Last Friday, the RBI MPC voted unanimously to keep rates unchanged and voted 5-1 in favor of continuing with its ongoing accommodative policy stance.
However, what many are seeing as a first step towards policy normalisation is the MPC’s aggressive tapering of liquidity.
Let’s go to Madan Sabnavis, independent economist, for a quick analysis of the RBI’s liquidity stance
For Nilesh Shah, group president and MD of Kotak Mahindra AMC, the policy decision, and I quote, was a 'Main Hoon Naa' policy that aimed to support growth, keep inflation expectations under check, provide stability to financial markets, ensure adequate and appropriate liquidity, yield curve management, and ensure smooth passage of the govt's borrowing program, unquote.
In the near-term, corporate earnings, economic data, and stock-specific developments will guide the markets.
To begin with, Tata Group stocks, listed airline players, and divestment-bound PSU stocks will be on investor radar today after the government, last Friday, announced debt-laden Air India’s takeover by Tata Sons Ltd.
Separately, shares of Tata Consultancy Services will react to the company’s Q2FY22 result, which was released post-market hours on Friday.
The third event for the day is Aditya Birla Sun Life AMC’s listing. The IPO was subscribed 5.25 times and had received bids worth Rs 10,395 crore at upper price band Rs 712 per share.
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For the rest of the week, CPI inflation for September and IIP data for August is slated to be released tomorrow.
This will be followed by wholesale inflation data for September on Thursday.
On the earnings front, about 49 companies are scheduled to report their quarterly results this week, including Infosys, Mindtree, Wipro, HCL Tech, HDFC Bank, and Indiabulls Real Estate.
Technically, weekly F&O data indicates a range of 17,000 to 18,200 for the Nifty with support placed at 17,650. Any breach below this level can drag the index towards 17,500.
The Nifty Bank index, meanwhile, may trade within a range of 37,200 to 38,500 this week.
As regards Sensex, Fibonacci analysis suggests a broad range of 59,400 and 60,950 for the week.
Globally, headwinds like US bond yields, high global commodity, oil and energy prices, and developments in China will guide sentiment across emerging markets.
Topics :Market Ahead
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First Published: Oct 11 2021 | 7:45 AM IST
