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RBI interest rate decision, global trends, earnings to dictate stock markets: Analysts

10:16 AM Feb 04, 2024 | PTI |

New Delhi: Stock markets will be driven by quarterly earnings by index majors, global trends and the RBI’s interest rate decision this week after digesting news on budget proposals and US Federal policy outcome, say analysts.

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The trading activity of foreign investors and the movement of global oil benchmark Brent crude would also dictate trends in equities.

“On the domestic front, the MPC (Monetary Policy Committee) meeting is scheduled from February 6-8. The Q3 quarterly results season will continue to remain in focus. Bharti Airtel, Power Grid, Nestle, Lupin and Tata Power will announce their results this week,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

Market participants will be keeping an eye on the movement of the rupee against the dollar and crude oil prices, Gour said.

Investments by Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) will also be monitored, he added.

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“With the US Fed and interim Budget now behind, all eyes will be on RBI’s policy meeting this week,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said.

Last week, the BSE benchmark jumped 1,384.96 points or 1.95 per cent, and the Nifty climbed 501.2 points or 2.34 per cent. On Friday, the Nifty reached its lifetime peak of 22,126.80.

The market focus will be on the ongoing Q3 FY24 earnings season, with many companies announcing their results in the coming days such as Ashok Leyland, Bharti Airtel, Apollo Tyres, Nestle, Grasim, LIC, said Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.

“The market will react to major domestic and global economic data, crude oil inventories, FII/DII investment pattern, and movement of rupee against the dollar. Economic numbers will impact the market such as S&P global services PMI of countries like India, UK, US, initial jobless claims, China’s inflation numbers and India’s interest rate decision,” Nanda added.

The tone was positive for the most part of the last week amid favourable global cues and buying in select heavyweights.

“We expect volatility to remain high this week as well and the focus will be on earnings and RBI meet for cues. On the global front, the steady uptrend in the US markets will continue to favour the bulls,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.

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