MARKETS BRACE FOR RBI POLICY, Q1 EARNINGS
NEW DELHI: The domestic equity market in this coming week will be driven by a host of key developments like RBI monetary policy, macro-economic data release and corporate earnings, analysts said.
At the start of the week, the market will also take cues from July auto sales numbers which signal a recovery in the sector hit hard by Covid-19.
With most parts of the country in unlock phase, the automobile industry has performed better in July over the previous month in terms of sales and is now marching towards normalcy in terms of production as well.
“Going forward, markets would react to auto sales numbers. On the event front, they would also be keeping a close watch on the RBI monetary poli cy,” said Ajit Mishra, VP Research, Religare Broking.
On the macro data front, market participants will be keenly awaiting PMI manufacturing and services sector numbers that are scheduled to be released in the first half of the week. On the earnings side, Bharti Airtel, Tata Steel, Lupin, Titan, Voltas Apollo Tyres, Canara Bank, Adani Power and M&M will announce their quarterly numbers during the week. “We expect market volatility and stock-specific action to continue for a while. Investors would watch out for quarterly results for stock-specific action and development over US fiscal stimulus which could provide some cheer to the markets,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.
The RBI Monetary Policy Committee is scheduled to meet for three days beginning August 4 and will announce its decision on August 6.