Union Budget 2021, RBI policy, auto sales among key factors that may decide market trend next week

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Union Budget 2021, RBI monetary policy outcome, December quarter earnings and auto sales figures for the month of January will drive the market next week.

Market is awaiting key reforms that could push growth and kickstart the capex cycle in the economy. The Union Budget 2021-22 would be presented on February 1. The Parliament session started from January 29, and would be held in two phases. Subject to exigencies of government business, the session is likely to conclude on April 8, 2021.

The movement of rupee against the dollar and crude oil prices will dictate trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will also be in focus in the week ahead.

Among key results, ICICI Bank and Shree Cement will announce results for quarter ended December 31 on January 30. Housing Development Finance Corporation will declare result for quarter ended on February 2. Bharti Airtel will unveil result on February 3.

Hero MotoCorp, HPCL, NTPC and State Bank of India will announce results February 4, while Britannia Industries and Mahindra & Mahindra will declare results on February 5.

Auto stocks will be in focus as auto companies will start announcing monthly sales numbers for January starting from February 1.

The Monetary Policy Committee (MPC), headed by RBI Governor, is scheduled to meet for three days beginning February 3 and will announce its decision on February 5.

In economic data, Markit Manufacturing PMI for January will be declared on February 1. Markit Services PMI for January will be declared on February 3.

Global cues will continue to be in focus as a resurgence in virus cases around the world, leads to more restrictions and more pressure on economic recovery. Updates related to Covid-19 will be closely watched. Also on the radar will be news on Covid vaccine development. From here on the pace of the improvement of economic indicators along with outcomes of a possible vaccine or cure for Covid-19 would determine the movement of the market.

Total Covid-19 confirmed cases worldwide stood at 10,08,66,032 with 21,74,129 deaths. India reported 1,73,740 active cases of Covid-19 infection and 1,53,847 deaths while 1,03,73,606 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Overseas, China will announce the Caixin Manufacturing PMI for January on February 1.

The US Markit Manufacturing PMI for January will be declared on February 1.

The Euro Area Markit Manufacturing PMI for January will be declared on 1 February 2021.

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