GDP data, IIP numbers to steer market in truncated week ahead
NEW DELHI: After a series of failed attempts, the bulls managed to break the shackles of the bears and ended the last trading session of the week on a euphoric note.
The S&P BSE Sensex climbed a good 323 points on Friday to close at 34,142, while the broader Nifty50 added 108 points, or 1 per cent, to settle at 10,491.
Out of 50 Nifty constituents, 43 ended in the green and 7 in the red. On a weekly basis, the 30-pack BSE Sensex gained 0.38 per cent while the Nifty added 0.37 per cent.
Going into the new week, macro numbers – including GDP data and IIP – will determine the market’s direction during the truncated week ahead, as markets will remain closed on Friday, March 2, on account of Holi.
Dec quarter GDP data in focus
Come Wednesday and all eyes will be on third quarter GDP number. GDP rose 6.3 per cent in the July-September period, in line with independent estimates, compared with a three-year low of 5.7 per cent reported for the April-June quarter and 7.5 per cent in the year earlier. According to an SBI Research report, December quarter GDP growth number is likely to be in the 6.5-7 per cent range and may expand further in following three months. The SBI Ecowrap report, however, added ‘recent developments’ in the financial markets could act as a restraining factor on growth front.
IIP numbers for February, too, are scheduled for release on Wednesday. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) fell from December’s 5-year high of 54.7 to 52.4 in January. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
HG Infra Engg IPO opens Monday
Jodhpur-based Engineering, procurement and construction (EPC) player HG Infra Engineering is all set to hit the primary market on Monday, February 26, with its Rs 462 crore initial public offering (IPO). The company on Saturday garnered over Rs 138 crore from anchor investors. The IPO consists of fresh issue of shares aggregating up to Rs 300 crore and an offer for sale of up to 60 lakh shares from existing shareholders. The price band of the issue has been fixed at Rs 263-270 a share. The issue will close on February 28.
Nifty chart suggests more upside
The Nifty50 on Friday climbed over 1 per cent to make a solid bullish candle on the daily chart. On weekly charts, the index made a 'Dragonfly Doji', suggesting that a trend reversal could be round the corner. "The strength of this upmove with a broadbased participation and a decisive close above 100-day EMA is pointing towards more upsides, which can get extended initially up to the 10,600 level," said Mazhar Mohammad of Chartviewindia.in. “The market may get a positive start and it is likely to continue with the upmove that it saw on Friday. We are likely to see a follow-through move, at least in the initial trade on Monday,” said Milan Vaishnav, CMT, MSTA.
JSW Steel-Monnet Ispat deal done?
JSW Steel is likely to announce takeover of Monnet Ispat on Monday, ETNow reported on Friday, quoting sources. The TV channel said JSW Steel is all set to buy debt-ridden Monnet Ispat for Rs 3,750 crore. Monnet Ispat, which is part of the first lot of 12 defaulters referred by the Reserve Bank of India for insolvency proceedings, has a sponge iron unit with a capacity of one lakh tonnes a year.
Keep an eye on HDFC Bank
Capital markets regulator Sebi on Friday directed HDFC Bank to conduct an internal probe into the leakage of financial results before their disclosure to stock exchanges. It asked the country’s largest bank by market value to take action against those responsible for the leak and strengthen its internal processes.
Trump visa policy may hurt IT
The Trump administration’s new visa policy is expected to create an “indirect barrier” for technology companies that send engineers from India to work on US projects, said an ET report. "It puts restrictions on a practice that the industry follows to keep cost low: hiring engineers, who hold H-1B visas, on short term from bodyshopping firms and deploying them on US projects. However, companies such as TCS, Infosys, Wipro and HCL Tech are unlikely to see any problem," the report added quoting industry experts.
These apart, inflows from foreign portfolio investors (FPIs), rupee against movement against the dollar and crude oil price movement are the other key factors that the market may take cues from.