| Trigger for the Week |
How will it impact? |
| Insurance companies to react negatively to budget changes |
- LIC listing and making Section 80C investments optional likely to hit demand for life and health protection
|
| No recapitalization allocation negative for PSU banks |
- Budget puts halt to bank recap after allocation of Rs.3.5 trillion. Negative for PSU banks, especially weaker ones
|
| Higher fiscal deficit target at 3.8% likely to hit bond yields |
- This is broadly expected to be negative for most rate sensitives like banks, NBFCs and real estate
|
| Tax tweaks likely to encourage more spending over saving |
- Shift to new taxation system positive for FMCG and consumer durable stocks due to spending power
|
| RBI policy during the week likely to be keenly watched |
- With inflation at 7.35%, rate cuts almost look unlikely so impact of the policy would be largely marginal
|
| Markets may watch out for the $174 billion China stimulus |
- Apart from negating the impact of Corona virus pandemic, this will be infusing liquidity in markets
|
| Big allocations to water and infra positive for select stocks |
- Stocks like L&T and IRB could get big contracts while VA Tech Wabag could benefit from water treatment deals
|
| Assemble in India approach positive for electronics |
- This could open the doors for big outsourcing contracts and benefit stocks like Redington and Dixon Tech
|
| Plan for data centre parks likely to be positive for IT companies |
- Stocks like HCL Tech, Tech Mahindra and Wipro could benefit due to their strong exposure to both sides
|
| Key earnings likely to keep the markets interested |
- Some of the major earnings expected this week are Titan, Bharti, Cipla, Lupin, M&M and Sun Pharma
|
| Oil companies to invest Rs.1 trillion in exploration and refining |
- This is likely to trigger fresh interest in oil companies in the next few weeks
|
| Weak oil will keep the rupee strong in the coming week |
- With Brent crude falling to $56/bbl, FMCG stocks to benefit and rupee to remain steady on import comfort
|
| Manufacturing PMI hits 8-year high of 55.3 for January 2020 |
- This was driven by higher orders and output and is likely positive for most manufacturing stocks
|
| ITC could be the stock to watch on the downside; being a heavyweight |
- Budget worries on duties dampened the stock by nearly 15% in two days on future earnings worries
|
