Market may remain volatile ahead of RBI meet
After a short spam of rally, Dalal Street again saw an all round selling last week with a loss of nearly 4 percent. Selling remained restricted not only up to certain stocks or sectors but it was seen in most of the sectors. The sentiment, got recovered after the Union Cabinet approval of 51 percent foreign direct investment in multi brand retail, couldn't be sustained as the govt suspended its move under immense pressure from the opposition benches.
A shot in the arm also came from the government mid- year review report tabled in Parliament on Friday in which growth estimate has been revised to 7.5 percent as against its own estimate of 8 percent. However outcome of European Union summit came after market closing but the logjam over common fiscal pact has dashed investors' hope of any major announcement.
The outcome of EU summit was more or less in the expected lines so any major rally cannot be hoped this week. Slight upside might be seen. Major economic data will remain in focus this week which may guide the sentiments in short span of time. The government will unveil industrial production data for the month of October on Monday. However most of the media reports have estimated a sharp fall in IIP numbers. One of the report said the fall may go up to 7 percent. Industrial production had grown only 1.9 percent in September, far from expectations.
Along with IIP numbers, headline inflation data will also on investor's card. The WPI monthly data due on Wednesday just two days ahead of RBI's mid quarter monetary policy review. After four consecutive declines in weekly food inflation it is widely expected that the central bank may pause its policy of rate hike on its meet on Friday. The WPI based inflation stood at 9.73 percent in the month of October as against 9.72 percent in September.
The food inflation remained at 6.6 percent for the week ended on November 26. Just four week ago it was above double digit. The RBI has hiked its key policy rates 13th times since March 2010. Some of the experts are also anticipating a cut in CRR (cash reserve ratio) which has been left unchanged at 6 percent since May 2010.
Apart from Inflation numbers and RBI's policy meet, announcement of corporate advance tax payment will be significant for the investors as the numbers may provide solid cues about companies' third quarter results. On international front US Federal Reserve scheduled meeting will be keenly watched. The meeting due on Tuesday. But no major breakthrough or paradigm shift is expected. Most of the analysts are anticipating no change in Fed steady stance.
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A shot in the arm also came from the government mid- year review report tabled in Parliament on Friday in which growth estimate has been revised to 7.5 percent as against its own estimate of 8 percent. However outcome of European Union summit came after market closing but the logjam over common fiscal pact has dashed investors' hope of any major announcement.
The outcome of EU summit was more or less in the expected lines so any major rally cannot be hoped this week. Slight upside might be seen. Major economic data will remain in focus this week which may guide the sentiments in short span of time. The government will unveil industrial production data for the month of October on Monday. However most of the media reports have estimated a sharp fall in IIP numbers. One of the report said the fall may go up to 7 percent. Industrial production had grown only 1.9 percent in September, far from expectations.
Along with IIP numbers, headline inflation data will also on investor's card. The WPI monthly data due on Wednesday just two days ahead of RBI's mid quarter monetary policy review. After four consecutive declines in weekly food inflation it is widely expected that the central bank may pause its policy of rate hike on its meet on Friday. The WPI based inflation stood at 9.73 percent in the month of October as against 9.72 percent in September.
The food inflation remained at 6.6 percent for the week ended on November 26. Just four week ago it was above double digit. The RBI has hiked its key policy rates 13th times since March 2010. Some of the experts are also anticipating a cut in CRR (cash reserve ratio) which has been left unchanged at 6 percent since May 2010.
Apart from Inflation numbers and RBI's policy meet, announcement of corporate advance tax payment will be significant for the investors as the numbers may provide solid cues about companies' third quarter results. On international front US Federal Reserve scheduled meeting will be keenly watched. The meeting due on Tuesday. But no major breakthrough or paradigm shift is expected. Most of the analysts are anticipating no change in Fed steady stance.
Zee News provides latest business news, online news, sports news, bollywood news throughout the globe.
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