| Indian Market | 4-Feb-22 | ||
|---|---|---|---|
| Weekly Change | Close | Change | % chg |
| Nifty | 17516.30 | 414.35 | 2.42% |
| Sensex | 58644.82 | 1444.59 | 2.53% |
| Banknifty | 38789.35 | 1099.95 | 2.92% |
| Indian Market | 4-Feb-22 | ||
|---|---|---|---|
| Other Indices | Close | Change | % chg |
| Nifty Mid-Cap 100 | 30441.55 | 636.65 | 2.14% |
| Nifty Small-Cap 100 | 11197.40 | 205.50 | 1.87% |
| India VIX | 18.90 | -1.80 | -8.70% |
| US Market | 4-Feb-22 | ||
|---|---|---|---|
| Weekly Change | Close | Change | % chg |
| Dow 30 | 35089.74 | 364.27 | 1.05% |
| S&P 500 | 4500.54 | 68.69 | 1.55% |
| Nasdaq | 14098.00 | 327.40 | 2.38% |
| Currency / Commodity | 4-Feb-22 |
|---|---|
| Indices | Current |
| USD/INR | 74.6975 |
| EUR/INR | 85.646 |
| Dollar Index | 95.455 |
| US 10-year bond | 1.916 % |
| WTI Crude Oil | $ 91.95 |
| Brent Crude Oil | $ 92.78 |
| Gold | $ 1808.90 |
| Bitcoin | $ 41,656 |
| FII / DII Activity | 4-Feb-22 | Rs. (In Crores) |
|---|---|---|
| (Weekly - Prov) | Buy | Sell |
| FII | 7,695.27 | |
| DII | 5,923.71 |
Key Events of this week
- Bank of England committee voted to raise rates by 25 BPS to 0.5%. Four out of nine members pushed for 50 BPS rate hike, if done it would be unprecedented since BOE gained independence from government in 1997.
- ECB President Lagarde comments were surprisingly hawkish as inflation hits record high, change from its policy statement where she expects inflation to cool-down. Market is expecting rate hike as early as next month and bond buying could end in 3rd quarter.
- Crude Oil @ high since 2014 – WTI Crude & Brent Crude above $90: Oil prices are higher on geopolitical tensions as tension rises between Russia-Ukraine and winter storm in United States fueled concerns over supply disruption. An oil production and storage vessel exploded off the coast of Nigeria early on Wednesday.
- Budget 2022: The country’s fiscal deficit settled at 6.9% of the GDP in 2021-22 and will be targeted at 6.4% in the upcoming fiscal, Finance Minister Nirmala Sitharaman said in her Budget 2022 speech.
- If it (economy) continues to retain 8% real GDP growth by FY23 we should be at $5 trillion – V ANANTHA NAGESWARAN (Chief Economic Advisor).
- Alphabet (Parent company of Google) announce result on 1-Feb-22 beat the market expectation and announced 20-for-1 stock split. META (parent company of Facebook) came out with disappointing result; META was down by 26.44% on 3-Feb-22. META reported first ever drop in daily active users.
Market View: RBI MPC Policy 7 – 9 February 2022 in focus – outcome on 9-Feb-22
- Market will react to TATASTEEL & SBIN earnings on Monday opening. BANKBARODA other PSU bank came out with better-than-expected result.
- Indian 10-year G-Sec touched 6.95% yesterday before it cooled-off to 6.8790% as RBI rejected bids for 2026 & 2035 bonds as traders asked for higher yield.
- Inflation data release on 12-Jan-22 for December came at 5.59% which is within target range of RBI Committee target range of 4% (+ / -2%).
- This can be taken as soft signal of what is coming in RBI policy on Wednesday. Indian remains at comfortable level on forex reserve and local liquidity as compared to some other developing countries.
- Central Bank of Brazil increase interest rate by 150 bps from 9.25% to 10.75% on 2-Feb-22.
Our Approach
- Budget has been positive for and maintain continuity from previous budget, Finance Minister has kept policy of fiscal support and expansion continue and it remains key trigger for Infrastructure for 2022.
- Oil prices above $90 – retail prices for Petrol & Diesel have not been increase since November, oil marketing companies such as HPCL, BPCL & IOC to remain under pressure where as ONGC, RELIANCE and other Oil producers will be beneficiaries.
- IT stocks – Q3 result season ended with on positive note, stock prices witness profit booking on good result. IT stocks have corrected on profit booking and post correction it provides decent entry opportunity.
- RBI MPC Policy outcome will be key this time for Banking stocks and overall market as focus will whether easy monetary policy continues or there is any change.
- We continue to remain invested around 85 – 95% and post RBI policy may decide whether to reduce exposure or remain fully invested. US Fed rate hike in March 2022 is confirmed, so now market is fearing 50 bps hike in March policy.
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.