All eyes will be on the Reserve Bank of India's scheduled policy review on Dalal Street this week. News flow on the new COVID-19 variant, Omicron, will be in the spotlight. The primary market will also be in focus with four companies set to launch their IPOs.
Benchmark indices Sensex and Nifty50 have clocked a weekly gain after two straight weekly losses. Gains in IT and financial shares helped the indices close the week around one percent higher each. The Bank Nifty index rose 0.5 percent.
For the week ended December 3, the Sensex shed 589.3 points and the Nifty50 lost 170.3 points, to settle at 57,696.5 and 17,196.7 respectively. Broader markets also strengthened, with the midcap and smallcap gauges rising 1.2 percent and 0.5 percent respectively.
Dalal Street week ahead
Analysts will closely track the RBI's commentary on inflation and economy, to assess the pace of the recovery given the news of the Omicron variant of COVID.
"The RBI Governor's comments will provide insight on our economy, inflation issues, and any future measures our central bank may make. Inflation data for China and the US may add to market volatility. Additionally, as more clarity on the new COVID-19 version becomes available, investors can expect whipsaw movements in the markets," said Yesha Shah, Head of Equity Research at Samco Securities.
Vinod Nair, Head of Research at Geojit Financial Services, expects the central bank to maintain its 'accommodative' policy stance keeping key rates at existing levels, and continue to absorb excess liquidity from the market through variable reverse repo rate (VRRR) auctions.
"The much-awaited decision of the MPC will be on whether they would wait for another session and evaluate the impact of Omicron to decide on a reverse repo rate hike," he added.
Technical outlook
"The index is trading around support at its 20-day exponential moving average on the weekly chart... While this bounce can continue for a few weeks, the correction witnessed has done notable damage to the ongoing momentum," said Shah.
She expects immediate support for the Nifty at 16,850 and resistance at 17,600, and advises traders to maintain a cautious to mildly bullish outlook.\
Here are the key factors and events that are likely to influence Dalal Street in the week starting December 6:
DOMESTIC CUES
RBI Policy
The RBI is due to release its statement on Wednesday after the conclusion of its scheduled policy review.
Macroeconomic data
Official data on industrial production is due after market hours on Friday.
IPOs
The IPO of Anand Rathi Wealth will close on Monday, December 6.
On Tuesday, Rategain Travel Technologies, India's largest software provider in travel and hospitality, will kick off its initial share sale. The IPO will close on Thursday, December 9.
On Wednesday, December 8, the IPO of Chennai-based residential real estate company Shriram Properties will open for subscription. The public offer will close on Friday.
Data and technology company Mapmyindia's IPO will open on Thursday.
On Friday, the IPO of Rakesh Jhunjhunwala-backed footwear company Metrobrands will open for bidding.
FII flow
Foreign fund flow will be in focus once again. Last week, foreign institutional investors net sold Indian equities worth Rs 17,418.1 crore ($1.7 billion).
Corporate action
| Security Name | Ex Date | Purpose | Record Date |
| Coal India | 06-Dec-21 | Interim dividend Rs 9 | 07-Dec-21 |
| Panchsheel Organics | 06-Dec-21 | Bonus issue 1:1 | 07-Dec-21 |
| Chartered Logistics | 07-Dec-21 | EGM | - |
| Grandeur Products Ltd | 08-Dec-21 | Amalgamation | 09-Dec-21 |
| BNK Capital Markets | 09-Dec-21 | Dividend Rs 2.5 | - |
| Dugar Housing Developments | 09-Dec-21 | EGM | - |
| Oriental Aromatics | 09-Dec-21 | Interim dividend Rs 1.5 | 10-Dec-21 |
| Ridhi Synthetics | 09-Dec-21 | Right issue | 10-Dec-21 |
| Shivam Autotech | 09-Dec-21 | Right issue | 10-Dec-21 |
| TT | 09-Dec-21 | Interim dividend Rs 1 | 10-Dec-21 |
| Weizmann | 09-Dec-21 | Buyback | 10-Dec-21 |
| Seacoast Shipping Services | 10-Dec-21 | EGM | - |
GLOBAL CUES
Europe
Bank of England Deputy Governor Monetary Policy Ben Broadbent is due to speak on Monday, December 6.
Asia
Data on trade in China is due on Tuesday, and on inflation on Thursday.
Japan's quarterly GDP numbers are due on Wednesday.
United States
US inflation data is due on Friday.
(Edited by : Sandeep Singh)
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