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The first quarterly review of the monetary policy for 2013-14 by the Reserve Bank of India and earnings of companies for Apr-Jun will lend direction to the market next week. On Tuesday, the central bank will release the review of the monetary policy. Most market participants are expecting a status quo on the policy front, given the recent depreciation of rupee against the dollar. At this stage, (the RBI) prefers indirect tools to tighten liquidity rather than outright monetary policy instruments - CRR or repo rate- which are more difficult to reverse.
Since these indirect measures, recently announced, appear to be working, the RBI would likely prefer a 'wait and watch' approach this time. On account of the policy, rate sensitive sectors such as banks, real estate and capital goods will be in the limelight. Movement of the rupee will also be watched. The bias for the Indian equities being negative.
Next week, Nifty companies detailing Apr-Jun numbers are IDFC, Jaiprakash Associates, UltraTech Cement, Jindal Steel & Power, Dr Reddy's Laboratories, NTPC, Reliance Infrastructure, Bharti Airtel, HCL Technologies, ICICI Bank, and Bank of Baroda. On Monday, IDFC is seen reporting an 18% year-on-year rise in Apr-Jun net profit to 4.54 bln rupees, mainly on account of stable asset quality, healthy loan growth and lower base effect. On the other hand, the country's largest cement manufacturer by volume, UltraTech Cement, is expected to report a 21% year-on-year decline in net profit at 6.17 bln rupees in Apr-Jun due to poor realizations amid slackness in demand.
Among other companies, Jet Airways India will be in focus as the Foreign Investment Promotion Board will meet on Monday, to consider 32 foreign direct investment proposals, including that of the airline. Wipro stocks will take cues from its numbers released yesterday, after market hours. The company's consolidated net profit of 16.23 bln rupees is in line with estimates.
The first quarterly review of the monetary policy for 2013-14 by the Reserve Bank of India and earnings of companies for Apr-Jun will lend direction to the market next week. On Tuesday, the central bank will release the review of the monetary policy. Most market participants are expecting a status quo on the policy front, given the recent depreciation of rupee against the dollar. At this stage, (the RBI) prefers indirect tools to tighten liquidity rather than outright monetary policy instruments - CRR or repo rate- which are more difficult to reverse.
Since these indirect measures, recently announced, appear to be working, the RBI would likely prefer a 'wait and watch' approach this time. On account of the policy, rate sensitive sectors such as banks, real estate and capital goods will be in the limelight. Movement of the rupee will also be watched. The bias for the Indian equities being negative.
Next week, Nifty companies detailing Apr-Jun numbers are IDFC, Jaiprakash Associates, UltraTech Cement, Jindal Steel & Power, Dr Reddy's Laboratories, NTPC, Reliance Infrastructure, Bharti Airtel, HCL Technologies, ICICI Bank, and Bank of Baroda. On Monday, IDFC is seen reporting an 18% year-on-year rise in Apr-Jun net profit to 4.54 bln rupees, mainly on account of stable asset quality, healthy loan growth and lower base effect. On the other hand, the country's largest cement manufacturer by volume, UltraTech Cement, is expected to report a 21% year-on-year decline in net profit at 6.17 bln rupees in Apr-Jun due to poor realizations amid slackness in demand.
Among other companies, Jet Airways India will be in focus as the Foreign Investment Promotion Board will meet on Monday, to consider 32 foreign direct investment proposals, including that of the airline. Wipro stocks will take cues from its numbers released yesterday, after market hours. The company's consolidated net profit of 16.23 bln rupees is in line with estimates.
