By Ruma Dubey
It is going to be a data packed week and when it is all about data, the mood on the Street is always wait-and-watch.
After the record breaking past week, today it almost looks like as though the market is taking a breather, waiting to catch its breath, with an eye on the goal post, preparing for the next lap.
This is a week of central banks. Almost all the banks around the world, in this first week of August, are scheduled to take decisions on interest rates. Take a look at the schedule:
India’s RBI – 2.30 PM 1st August
USA’s Fed Reserve – 11.30 PM 1st August
Bank of Japan – 7.00 AM 2nd August
Bank of England – 4.30 PM, 2nd August
Reserve Bank of Australia – 10 AM, 7th August
Thus till 1st August at least, the market could be more range bound as the impact of decisions by other central banks might not be much.
Other macro data which could have an impact would be the monthly auto sales number and PMI – both expected on 1st August.
This apart, the earnings season is on so it would be more of stock specific action. Today, big names like Axis Bank, HDFC, Tech Mahindra, Century Textiles, GIC, Godrej Consumer, Indigo and many more are to announce their numbers. Tomorrow biggie is Tata Motors.
And in the week starting 1st August, we could stock specific action in Apollo Tyres, Emami, Exide, HEG, Pidilite and a whole slew of midcap stocks. That will pretty much set the mood.
So till day after tomorrow, the moods will remain more or less somber and if no rate hike comes in, as expected, the markets will be back to zooming up in the second half of the week.
Thus it’s a week where central bank’s are setting the mood the market and we can only wait-and-watch till the event gets over.