RBI pol­icy re­view, Q1 re­sults to steer In­dian mar­kets

Muscat Daily - - BUSINESS -

Mum­bai, In­dia - The Re­serve Bank of In­dia’s (RBI) mon­e­tary pol­icy re­view and the on­go­ing quar­terly re­sults sea­son are ex­pected to de­ter­mine the tra­jec­tory of eq­uity in­dices this week.

Ac­cord­ing to mar­ket ob­servers, global geopo­lit­i­cal sit­u­a­tion and macro-eco­nomic data points will also im­pact in­vestors’ risk-tak­ing ap­petite.

“RBI’s mon­e­tary pol­icy re­view slated for this week is go­ing to be one of the most im­por­tant events that will in­flu­ence the eq­uity mar­kets,” Deven­dra Nevgi, chief ex­ec­u­tive of Zyfin Ad­vi­sors, told IANS. “Mar­kets have al­ready dis­counted the pos­si­bil­ity of a 25 ba­sis points cut. In­vestors will also look for­ward to the lan­guage and cues that RBI will give on the fu­ture in­fla­tion sce­nario and rate cut out­look.”

In its last re­view, the RBI had kept the key lend­ing rate un­changed. How­ever, de­cel­er­a­tion in re­cent con­sumer and retail in­fla­tion data points has spurred ex­pec­ta­tions of a rate cut.

Apart from mon­e­tary pol­icy re­view, quar­terly earn­ings re­sults will be the other ma­jor theme for the week.

Com­pa­nies like In­dian Oil Corp, M&M, Power Grid, Marico, Lupin, Ti­tan, Pun­jab Na­tional Bank and Re­liance Power are ex­pected to an­nounce their first quar­ter re­sults dur­ing this week.

“Earn­ings have be­come very crit­i­cal as the PE (price-earn­ings) ra­tio are ex­ceed­ing the cur­rent earn­ings. In the near term earn­ings need to catch up with the PE ra­tios for the mar­kets to move higher,” Nevgi ex­plained.

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