| Trigger for the Week |
How will it impact? |
| Markets likely to react favourably to Brent Crude below $61/bbl |
- Combination of US supply at 20 million bpd and the China virus will keep oil prices under pressure
|
| Private banks to react to weakening asset quality across the board |
- Apart from HDFC Bank and Kotak Bank, ICICI Bank also saw a sharp rise in its BB quality loan portfolio
|
| Direct tax cuts in the Budget 2020 could drive markets this week |
- Higher taxable slabs and lower rates could be positive for consumption and banking stocks this week
|
| All eyes will be on the fiscal deficit outlook in the Budget 2020 |
- Fiscal deficit under 3.8% will be seen as positive for banks and other rate sensitive sectors
|
| F&O expiry on Thursday likely to be marked by Budget accumulation |
- India enters a long 6-day trading week and F&O expiry could see buying and long rollover in budget stocks
|
| Big Q3 results are due this week across key heavyweights |
- Big numbers this week from HDFC, SBI, Bharti, Bajaj Auto, Maruti, HUL and Tech Mahindra to drive markets
|
| Markets await the update on the Chinese corona virus story |
- With weak demand being a real threat, any update on control measures will be seen as positive by markets
|
| Big budget focus will be on income taxes, LTCG tax and DDT |
- Rationalization of these taxes considering the economic slowdown could be a big boost for the markets
|
| AGR due date may be gone but this week could be critical for telcos |
- Bharti and Vodafone still need to pay a princely sum. Any concession will be welcomed by telcos this week
|
| Watch out for the economic survey ahead of the budget announcement |
- The GDP growth and inflation outlook will be critical in determining the future stance of the Budget 2020
|
| Keep an eye on the VIX which shot up sharply during the week |
- The 820 point fall in Sensex was accompanied by VIX above 15 and that could add to expiry volatility
|
| Asian market reaction could be delayed due to New Year holidays |
- Apart from the Chinese New year, Australia Day may also keep Asian markets tepid during the week
|
| US Fed meets on 28-29 Jan and rate cuts are already ruled out |
- With rate cuts unlikely, the focus for Indian markets will be on the language of the Fed and its monetary outlook
|
| BREXIT is on Jan-31 with withdrawal agreement already signed on 24 Jan |
- Indian markets on Budget Day could also react to the outcome of the BREXIT and the global volatility
|
