Investors booked profits on Friday with key indices ending lower a day after surmounting a spectacular 50,000 for the Sensex on Thursday. Sensex ended 746 points lower at 48,878 and Nifty closed 218 points lower at 14,371. Let us look at the events that may drive the market in the truncated week ahead.
Over 370 companies are set to release their December quarter earnings this week. The list includes a number of prominent companies like Kotak Mahindra Bank, L&T, Axis Bank, Hindustan Unilever, Lupin, Maruti Suzuki, Cipla, Dr Reddy's Laboratories, IndusInd Bank, Indian Oil, Sun Pharma, Tata Motors, Tech Mahindra, Vedanta and ICICI Bank.
US Federal Reserve policy meet
The Federal Open Market Committee will meet on 26-27 January to decide and discuss the monetary policy it should adopt in a bid to revive the United States economy, which has been fraught by record cases of Covid19. The committee will meet for the first time after President Joe Biden has taken over from the Donald Trump administration. Economists do not expect much change in the monetary policy, but the commentary may provide some cues to the policymakers' view on the ongoing Covid situation and its resultant impact on the economic health of the country.
Foreign institutional investors were net sellers on Friday, withdrawing Rs635.69cr from the domestic equity market. However, the tally for this month remains positive to date, with foreign investors buying Rs24,469cr worth of shares in the Indian stock markets.
Initial public offer
The initial public offering (IPO) of kitchen appliances maker Stove Kraft is set to open today. The IPO comprises of fresh issue of Rs95cr by the company and offer for sale of 82.50 lakh equity shares by promoters and investors. The offer for sale consists 6,90,700 equity shares by promoter Rajendra Gandhi and 59,300 shares by promoter Sunita Rajendra Gandhi, and 14,92,080 shares by Sequoia Capital India Growth Investment Holdings I and up to 60,07,920 shares by SCI Growth Investments II. The price band has been set at ₹384-385 per share for the initial share-sale, which would be open for public subscription from January 25 to January 28.
Stove Kraft Ltd has raised a little over Rs185 crore from anchor investors ahead of its initial public offer. It has allotted 48,22,290 shares to 32 anchor investors at Rs385 a piece, which is the upper end of the price band. The company raised Rs185.68 crore at this price, according to a BSE circular.
Wall Street’s main indexes ended lower on Friday, investors weighed the outlook for President Joe Biden's nearly $2 trillion stimulus bill and grew concerned amid reports that the new coronavirus variant may be deadlier. The Dow Jones Industrial Average fell 179.03 points, or 0.57%, to 30,996.98, the S&P 500 lost 11.6 points, or 0.30%, to 3,841.47 and the Nasdaq Composite added 12.15 points, or 0.09%, to 13,543.06.
President Joe Biden said on Friday the U.S. economic crisis was deepening and that the government needs to take major action now to help struggling Americans. The Senate Finance Committee will vote on Friday on Janet Yellen’s nomination for Treasury secretary, an early litmus test of bipartisan support for President Joe Biden’s ambitious plans for coronavirus relief, infrastructure investment and tax hikes. Biden has proposed a $1.9 trillion coronavirus relief plan and has pledged to invest $2 trillion in infrastructure, green energy projects, education and research. Some Republicans have expressed concerns over its price tag.
As the day of unveiling the Union Budget 2021 gets closer, markets may be more reactive to expectations surrounding the proposals. Tax payers are particularly awaiting this Budget to provide for some exemptions in lieu of the disruption caused by the pandemic. Hike in personal tax threshold, measures to boost healthcare, additional deductions for salaried work-from-home employees, measures accelerate and propel infrastructure, manufacturing, scrappage policy for the auto, could be some key expectations from the Budget.
Nearly 16 lakh people have been vaccinated since January 16, when the mass inoculation drive against COVID-19 was launched, with 10 lakh taking vaccine shots in just six days, a count which is higher than that of countries like the US and the UK, the Health Ministry said today. The UK took 18 days whereas the US took 10 days to reach the 10-lakh mark, the government said. 15.82 lakh people have been vaccinated in 27,920 sessions so far, of which 1.91 lakh people were vaccinated on Saturday (in 3,512 sessions) alone, according to the Health Ministry. India on Saturday also started commercial export of Covid vaccines. Apart from Brazil, Covid vaccines are also being sent to Saudi Arabia, South Africa, Morocco, Bangladesh and Myanmar.
Across the globe, more than 9.62 crore people infected by the virus with over 20.58 lakh deaths. United States remains at the top, with over 2.48 crore confirmed infections and 4.14 lakh deaths. Several European countries also continued to struggle with COVID-19 crisis including United Kingdom, France, Spain, Italy, Germany etc showing higher cases count.