India's WPI Data, US FOMC Decision, Two SME IPOs — The Week Ahead
The upcoming week will see many developments on the global macroeconomic landscape, with major central banks delivering their decisions on interest rates in the backdrop of growing tension regarding US tariffs. Market participants will parse central banks' head statements and policy actions to understand where the global economy is heading in upcoming months.
On the domestic front, the week appears a little dull with only India's WPI data release and two small and medium offers.
"The truncated week has been largely uneventful, marked by a lack of significant movement in the key indices. The benchmark index, in particular, exhibited a range-bound behaviour as it navigated through prevailing global uncertainties. After a brief relief rally in the previous week, the Nifty 50 shifted into a phase of consolidation characterised by cautious and hesitant movements. As the week drew to a close, it wrapped up on a bleak note, ultimately recording a decline of 0.69 percent for the week," said Osho Krishnan, senior analyst, technical & derivatives, Angel One.
Markets Last Week
On a weekly basis, the NSE Nifty 50 and BSE Sensex reversed gains from the preceding week. The Nifty declined 0.69%, while the Sensex was down 0.68%. In the previous week, the Sensex was up 1.71%, while Nifty rose 1.96%.
On Thursday, the NSE Nifty 50 extended the fall for the second day, and the BSE Sensex declined for the fourth straight day. The Nifty ended 73.30 points, or 0.33%, lower at 22,397.20, while the BSE Sensex closed 200.85 points, or 0.27%, down at 73,828.91 after they opened in the green.
Domestic Cues
Market participants now await Wholesale Price Index data for February after India's headline inflation figure provided the much-awaited relief last week. In January, India's WPI rose to 2.37% from 1.39% in December, tracking a rise in commodity prices in the international markets.
Other than this, domestic market participants will monitor the routine foreign exchange reserve data release at the end of the week by the Reserve Bank of India.
Global Cues
Market participants across the globe will hold their breath in the first half of the upcoming week for monetary policy decisions from major economies.
The US Federal Reserve is scheduled to meet on March 18-19. The US central bank is expected to keep the benchmark federal funds rate range unchanged at 4.25–50%. Chair Jerome Powell's statement will also be crucial to get cues about the future rate trajectory in the US.
Other than this, the US will release its housing starts and retail sales data, which will be important.
The Bank of England's Monetary Policy Committee will also make a decision about its benchmark bank rate on Friday. The current bank rate in England stands at 4.5%.
In Europe, it will release its CPI number for February on March 19. The European Central Bank will release its bulletin on March 20.
In Asia, the Bank of Japan will also deliver its decision on interest rates on March 19 after a two-day policy meeting. The central is also expected to stand pat on its current rate outlook. Governor Kazuo Ueda's statement will be analysed by the traders to understand where the Asian nation is headed with its interest rate trajectory in the near term.
In Japan, people also await the release of export data and the national CPI number this week.
The People's Bank of China will also deliver a decision on loan prime rates on March 19.
Primary Market Action
The dull theme from the last two weeks continues in the primary market upcoming week with only two initial public offers from small and medium enterprises. IPOs of Paradeep Parivahan Ltd. and Divine Hira Jewellers Ltd. are opening for subscription. The listing date for both the IPOs are not yet announced by the companies.
Paradeep Parivahan will open on March 17 and conclude on March 19. Its issue of 45.8 lakh shares. The company will be listed on BSE Ltd. Paradeep Parivahan is yet to announce its listing date on the exchanges.
Divine Heera Jewellers ill offer 35.4 lakh shares in through IPO. The issue will open on March 17 and end on March 19. This company is yet to disclose the date of listing.
