Sunday, January 27, 2013

The week ahead will keep India Inc and Dalal Street on their toes : RBI, FOMC Policy Meet, Bharti, ICICI Bank results to set the tone.


The Reserve Bank of India will take key decision on interest rates. The US Federal Reserve will also decide its further course on bond buying programme. Bellwethers like Bharti Airtel, ICICI Bank, BHEL will declare their results, which will set the next direction for markets. Investors and analysts will closely watch the management commentary as this could cause revision in future earnings forecast of the company for fiscal year ahead.

The Reserve Bank of India is likely to announce its monetary policy on Tuesday, January 29. According to Reuter's poll most economists expect RBI to cut its policy repo rate by 25 basis points to 7.75%.

On the global front, US Federal Open Market Committee's (FOMC) is organising its two-day meeting on interest rates in United States on 29 and 30 January 2013. Chairman Ben Bernanke and his fellow policy makers may vote to continue the Federal Reserve's bond-buying program as they debate when to end the purchases. The Fed currently is buying $45 billion in treasury notes and $40 billion in mortgage bonds each month. Global equity markets will keep a close watch on US Federal Reserve's commentary.

Auto and cement stocks will be in focus as companies from these two sectors would start unveiling monthly sales volume data for January 2013 from Friday, 1 February 2013. Nifty is likely to trade in the range of 5950 on the downside and 6150 on the upside. Market valuations are still not very expensive there is further headroom of another 10 to 15 per cent rally. The earnings season is almost coming to an end, select bellwether companies are all set to declare their results. Analysts expect mixed set of results from corporates.

India's diversified financial company ICICI Bank is likely to announce its third quarterly results on Thursday, January 31. According to Bloomberg estimate net profit is expected to rise 20.8% and net income by 20.2%. The largest telecommunications services company Bharti Airtel is likely to unveil its third quarterly results on Friday, February 1. Net profit is expected to decline 14.7% however sales are seen rising by 8.08%. 

- Team HBJ Capital
Chrysanth WebStory Published by WebStory

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