Last week the benchmark stock market indices made nominal gains on weak global sentiments and absence of any positive domestic trigger.
This week the macro-economic data, global trend and crude oil prices will influence the movement of the market.
Let’s take a look at factors that may dominate market mood:
- Consumer inflation for January will be released on Tuesday, while wholesale inflation is scheduled to be unveiled on Thursday. Recently, the RBI cut its repo rate by 25 basis points considering the benign inflation level.
- The Index of Industrial Production (IIP) for the month of December will be released on Tuesday. IIP growth stood at 0.47 per cent in November, with the high base of last year contributing to the slowdown.
- Global macro: UK’s fourth quarter GDP, China’s inflation data for January, Japan’s industrial production data for December and US Retail Sales for December are the major global macroeconomic numbers slated for release this week. European Commission last Thursday cut its growth forecast for the Euro zone this year and the next.
Earnings: Most heavyweights have already released their October-December earnings numbers. Approximately 2,000 BSE companies declare results between February 9 and February 15.
Rupee Vs Dollar: Rupee has been trading around 71 to a US dollar. Lower crude prices have been pushing the currency higher.
US-China trade talk: A new round of US-China trade talks begin Monday, after officials failed to reach a consensus in the last round of talks.
US – North Korea. President Trump said on February 8 that US diplomats had a ‘very productive meeting’ with North Korean officials, and he announced his summit with North Korean leader Kim Jong Un would be held in Vietnam’s capital, Hanoi on Feb27-28.
US govt shutdown: If no deal is reached on the US-Mexico border wall, parts of the federal US government may shut down again later this week (Feb 15) when stopgap government funding expires.