Last week the domestic share markets slipped more than 1 per cent with December quarter earnings of heavyweights dominating investor sentiment. Global cues and crude oil volatility also influenced sentiment.
This week sentiment is likely remain cautious ahead of the interim budget which will be presented in the parliament on February 1. Key events of the week are
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- Budget 2019: The Narendra Modi-led government will present its sixth budget on Feb 1. It is likely to be a Vote on Account, which will be only for three months before the new government presents a full-fledged budget in July. The major announcements are likely to be populist ones especially for rural and agri-based sectors, in the run-up to Lok Sabha elections.
- Quarter Earnings: Third-quarter numbers of major domestic firms can boost or dampen the market mood. Companies which will announce results this week include Escorts, Axis Bank, Bank of Baroda, Bajaj Finance, Bajaj Finserv, HDFC, HCL Technologies, Bharti Airtel, Hero MotoCorp, Bajaj Auto, ICICI Bank and State Bank of India. Tech giants Apple and Microsoft will also release their earnings this week.
- US-China trade talks: While the US has decided to end the government shutdown temporarily, it still has to reach a resolution on the trade war with China. Beijing politicians are in the US this week for talks.
- The futures and options contracts of January will expire on January 31 and traders will roll over their positions to February series.
- US Fed meet: The US Federal Reserve will hold its first monetary policy meet of 2019 on January 29-30. Markets across the world will closely follow it to see if the Fed starts a milder rate regime.
- Macro Data: India’s fiscal deficit numbers and infrastructure output numbers for the month of December will be released on January 31 (Thursday) while January Nikkei Markit Manufacturing PMI will be released on February 1 (Friday). China’s Caixin Manufacturing PMI data for January, US Nonfarm Payrolls data and US ISM Manufacturing PMI data will also be released this week.
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Crude oil: Oil prices rose on last Friday on concerns that the political turmoil in Venezuela may tighten the supply in the market.
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