All eyes will be on the Reserve Bank of India (RBI) on Dalal Street this week, after equity benchmarks finished the Budget week with gains of more than two percent. Besides, macroeconomic data, quarterly financial results and updates on the coronavirus pandemic will be in focus. Bond yields will also be on investors' radar.
Last week, the Sensex rose 1,444.6 points or 2.5 percent and the Nifty50 added 414.4 points or 2.4 percent led by broad-based gains. The Nifty Bank climbed up 1,010 points or 2.9 percent -- a second straight weekly gain. (Read more on the Budget week on D-Street)
The yield on the 10-year bond hit a two-year high after the government announced higher borrowing in its Budget for FY23.
The week ahead
"With the timeline set by the Fed for tightening, it would be crucial to see how the RBI's Monetary Policy Committee responds especially when the government has set the growth agenda in the Union Budget," said Ajit Mishra, VP-Research at Religare Broking.
A slew of companies are slated to report their earnings for the October-December period this week, including Bharti Airtel, Hero MotoCorp, Godrej Consumer, Mahindra & Mahindra, Ashok Leyland, TVS Motor, Divi's, ACC, Berger Paints, Dr Lal Pathlabs and IRCTC.
"The earnings season has been a mixed bag so far... IT and select private banking and auto companies have posted a decent performance... Consumer-driven sectors like FMCG, consumer durables and pharma have posted a muted show," said Mishra.
Technical outlook
The Nifty50 appears to be facing resistance around its 20-day exponential moving average and forming a lower top, according to Yesha Shah, Head of Equity Research, Samco Securities.
"On the contrary, the Nifty Bank has made a higher high and is exhibiting a bullish undertone due to recent outperformance in the PSU banks. As long as the Nifty does not break below 16,850, it is more likely that the lower top formed on the daily chart may end up being a minor decline," she said.
Shah suggests traders to maintain a neutral to mildly bullish outlook for the week, with immediate resistance expected at 17,800.
Religare Broking's Mishra recommends focusing on sector-specific opportunities and keeping a check on leveraged positions. He sees support for the Nifty at 17,350 and 17,000 in case profit taking continues, and resistance in the 17,850-18,000 zone.
Here are the key factors and events that are likely to influence Dalal Street in the week starting February 7:
DOMESTIC CUES
Feb 9: RBI rate decision
Feb 11: IIP data
Earnings
| Date | Quarterly earnings |
| Feb 7 | Coal India, Clean Science*, Indian Bank, Minda Industries, Nalco, TVS Motor Company, Union Bank |
| Feb 8 | Bharti Airtel, Godrej Consumer, IRCTC, IGL, AstraZeneca, Bata, Escorts, Data Patterns*, Latent View*, Stove Kraft* |
| Feb 9 | Aurobindo Pharma, Berger Paints, SAIL, ACC, Tata Power, Bosch, GMR Infra, Nykaa*, Paras Defence*, PowerGrid, Prestige Estates |
| Feb 10 | Hindalco, Hero MotoCorp, M&M, Dr Lal, MRF, HAL, Bharat Forge, Tata Chemicals, Trent, Lemontree, Krishna Institute*, Zomato* |
| Feb 11 | Ashok Leyland, Divi's, Indigo Paints*, Voltas |
*IPO in 2021
IPO
Bidding for Vedant Fashions' IPO will close on February 8, and the allotment of shares likely on February 11.
Adani Wilmar shares are likely to be listed on stock exchanges BSE and NSE on Tuesday.
FII flow
Foreign fund flows will remain in focus. Last week, foreign institutional investors net sold Indian equities worth Rs 2.1 crore, according to provisional exchange data.
Corporate action
| Stock | Ex date | Purpose | Record date |
| Cofroge | Feb 7 | Interim dividend Rs 13 | Feb 8 |
| Control Print | Feb 7 | Interim dividend Rs 4 | Feb 8 |
| Exide Industries | Feb 7 | Interim dividend Rs 2 | Feb 8 |
| Infibeam Avenues | Feb 7 | Interim dividend Re 0.05 | Feb 8 |
| KEI industries | Feb 7 | Interim dividend Rs 2.5 | Feb 8 |
| Kewal Kiran Clothing | Feb 7 | Interim dividend Rs 4 | Feb 8 |
| Nirmitee Robotics India | Feb 7 | EGM | - |
| Route Mobile | Feb 7 | Interim dividend Rs 3 | Feb 8 |
| Blue Dart | Feb 8 | Interim dividend Rs 25 | Feb 9 |
| Gravita India | Feb 8 | Interim dividend Rs 3 | Feb 9 |
| HIL | Feb 8 | Interim dividend Rs 20 | Feb 9 |
| Kirloskar Pneumatic | Feb 8 | Interim dividend Rs 1.6 | Feb 9 |
| MK Exim India | Feb 8 | Bonus issue 2:1 | Feb 9 |
| NIIT | Feb 8 | Interim dividend Rs 3 | Feb 9 |
| Procter & Gamble Hygiene & Health Care | Feb 8 | Interim dividend Rs 95 | Feb 9 |
| Schaeffler India | Feb 8 | Stock Split From Rs10/- to Rs2/- | Feb 9 |
| Aarti Drugs | Feb 9 | Interim dividend Rs 1 | Feb 10 |
| Bharat Electronics | Feb 9 | Interim dividend Rs 1.5 | Feb 10 |
| Gillette India | Feb 9 | Interim dividend Rs 33 | Feb 10 |
| GPT Infraprojects | Feb 9 | Interim dividend Rs 1.5 | Feb 10 |
| Indian Oil | Feb 9 | Interim dividend Rs 4 | Feb 10 |
| Orient Cement | Feb 9 | Interim dividend Re 0.75 | Feb 10 |
| Sun Pharma | Feb 9 | Interim dividend Rs 7 | Feb 10 |
| Alkem Laboratories | Feb 10 | Interim dividend Rs 30 | Feb 12 |
| Apcotex Industries | Feb 10 | Interim dividend Rs 2 | Feb 11 |
| Bajaj Consumer Care | Feb 10 | Interim dividend Rs 4 | Feb 12 |
| BPCL | Feb 10 | Interim dividend Rs 5 | Feb 11 |
| Cholamandalam Investment | Feb 10 | Interim dividend Re 1.3 | Feb 11 |
| LT Foods | Feb 10 | Interim dividend Re 0.5 | Feb 11 |
| Dhanuka Agritech | Feb 10 | Interim dividend Rs 8 | Feb 12 |
| Emami | Feb 10 | Interim dividend Rs 4 | Feb 11 |
| GMM Pfaudler | Feb 10 | Interim dividend Re 1 | Feb 11 |
| Greenlam Industries | Feb 10 | Stock split from Rs 5 to Re 1 | Feb 11 |
| IRB InvIT Fund | Feb 10 | Income distribution (InvIT) | Feb 12 |
| Jubilant Ingrevia | Feb 10 | Interim dividend Rs 2.5 | Feb 11 |
| KPIT Technologies | Feb 10 | Interim dividend Rs 1.25 | Feb 11 |
| Kretto Syscon | Feb 10 | Stock Split From Rs10/- to Rs1/- | Feb 11 |
| Kretto Syscon | Feb 10 | Bonus issue 1:10 | Feb 11 |
| MAS Financial Services | Feb 10 | Interim dividend Re 1.25 | Feb 12 |
| NACL Industries | Feb 10 | Interim dividend Re 0.15 | Feb 11 |
| Nitin Spinners | Feb 10 | Interim dividend Rs 1.5 | Feb 11 |
| Selan Exploration Tech | Feb 10 | Interim dividend | Feb 12 |
| Shivalik Bimetal Controls | Feb 10 | Interim dividend Rs 0.5 | Feb 12 |
| Shree Cement | Feb 10 | Interim dividend Rs 45 | Feb 12 |
| Shree Ganesh Biotech | Feb 10 | Stock split from Rs 10 to Re 1 | Feb 11 |
| SPML Infra | Feb 10 | EGM | - |
| Torrent Power | Feb 10 | Interim dividend Rs 9 | Feb 11 |
| TTK Prestige | Feb 10 | Interim dividend Rs 2.5 | Feb 12 |
| VRL Logistics | Feb 10 | Interim dividend Rs 8 | Feb 11 |
| Acrysil | Feb 11 | Interim dividend Rs 1.2 | Feb 14 |
| ASM Technologies | Feb 11 | Interim dividend Rs 2.5 | Feb 14 |
| Balrampur Chini Mills | Feb 11 | Interim dividend Rs 2.5 | Feb 14 |
| BLS International Services | Feb 11 | Interim dividend Re 1 | Feb 14 |
| Gothi Plascon | Feb 11 | Interim dividend Re 1 | Feb 14 |
| Nouveau Global Ventures | Feb 11 | EGM | - |
| Sona BLW Precision Forgings | Feb 11 | Interim dividend Re 0.77 | Feb 14 |
GLOBAL CUES
| Date | US | Europe | Asia |
| Feb 7 | China services PMI | ||
| Feb 8 | Trade data | ||
| Feb 9 | Crude oil stockpile | ||
| Feb 10 | Inflation, jobs data | ||
| Feb 11 | UK GDP numbers |
First Published: Feb 6, 2022 6:42 PM IST
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