RBI Meeting Minutes, Trade Deficit, PMI, FOMC Meeting Minutes, ICC Champions Trophy: The Week Ahead
On the political front it is expected that BJP will announce the chief ministerial candidate in the coming week and will take control of the Delhi government next week.
The upcoming week will see the latest print of the purchasing managers' index and trade deficit data release after a volatile week in the market and comparatively weaker earnings season. In addition, the Reserve Bank of India will release the minutes of the last meeting of the Monetary Policy Committee. The U.S. Federal Reserve is also expected to release the minutes of its last meeting.
Investors are increasingly adopting a risk-averse stance due to the strengthening of the dollar and the falling markets.
The benchmark Nifty 50 formed a red candle on both daily and weekly charts, signalling a lack of strength in the upside recovery, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd.
"The 21-Day Simple Moving Average is placed around 23,260, making the 23,260-23,300 zone an immediate hurdle," Yedve said.
A decisive move above 23,300 could confirm a near-term bottom reversal pattern, according to the analyst.
Markets This Week
The Indian equity benchmark indices closed lower on Friday, registering the longest losing streak in two years. The NSE Nifty 50 ended 102.15 points, or 0.44% lower at 22,929.25, and the 30-stock BSE Sensex closed 199.76 points, or 0.26% down at 75,939.21.
For the weekly overview, Nifty fell 2.8% during the week, marking this the worst week in this year. Nifty Realty emerged as the top sectoral loser for the week, falling more than 9% for the week.
Further, Nifty Midcap 150 registered the worst week since Covid. Nifty Realty logged its worst week since March 2024. Nifty Oil and Gas fell nearly 6% for the week, marking the worst weekly fall in last three months.
Broader markets underperformed benchmark indices. The BSE Midcap and Smallcap indices ended 2.59% and 3.24%, respectively.
Nifty Smallcap 250 fell 9.5% for the week, also registered its worst week since Covid-19.
Market breadth was skewed in the favour of sellers. Around 3,320 stocks declined, 681 stocks advanced, and 82 remained unchanged on BSE.
Domestic Cues
The RBI MPC Meeting minutes will be released in the week ahead. Comments by the new additions to the committee will be keenly watched. Among other important events, the Nikkei S&P Global Manufacturing PMI and Nikkei Services PMI will be released on Friday. Trade balance, exports and import data is expected to be released on Monday.
The foreign exchange data, which is released every Friday, will also be released.
On the political front it is expected that the Bharatiya Janata Party will announce its chief ministerial candidate for Delhi in the coming week and will take control of the government .
In sports, the ICC Champions Trophy 2025 will begin.
Global Cues
The FOMC meeting minutes, U.S. initial jobless claims, crude oil inventories, manufacturing PMI, services PMI are among some of the imoprtant data that investors will look out for in the coming week.
Europe is also expected to release date on trade deficit in addition to its Non-monetary policy meeting that will be held on Wednesday. The country will also release its Manufacturing PMI, S&P Global Composite PMI and Services PMI.
The US will also release its S&P Global Composite PMI and continuing jobless claims this week. Among important speakers for the week are FOMC Member Daly, Bowman and Harker.
Primary Market Action
The upcoming week will witness muted activity in the primary markets, in both the mainboard and SME segments. Investors will see one mainboard IPO closing, along with three mainline listings.
In the mainboard segment, Quality Power Electrical Equipment will close its IPO on Feb. 18. In the SME segment, Beezaasan Explotech is set to launch its IPO, which will be a book-built issue worth Rs 59.93 crore.
The SME platform will see multiple companies listing this week, including LK Mehta Polymers Ltd., Shanmuga Hospital Ltd., Voler Car Ltd., Maxvolt Energy Industries Ltd., PS Raj Steels Ltd. and Royalarc Electrodes Ltd.
Corporate Action
Shares of SJVN, Dalmia Bharat Sugar and Industries, Ircon International, Bharat Forge, Gillette India, Hindustan Aeronautics, KPI Green Energy, Natco Pharma, NBCC, IRCTC, P&G, Manappuram Finance and SJVN will turn ex-date for the issue of interim dividends. Meanwhile, shares of Capital India Finance will turn ex-date for its stock split.
The table below shows the full list of corporate actions for the upcoming week.
