The market will see some high volatility next week, with investors reacting to quartery results from India Inc. and the Reserve Bank of India's monetary policy. Activity will be quite hectic ahead of expiry of January series derivatives contracts.
Automobile stocks will be in focus. While the apex bank's stance on interest rate will determine their movements during the earlier part of the week, January vehicles sales data will give some direction on the final session.
Cement stocks will take cues from January shipments data. Movements of stocks from banking and realty sectors will depend largely on the central bank's interest rate decision.
Reliance Infrastructure, ICICI Bank, Grasim Industries, Punjab National Bank, Lupin, Siemens, BHEL, Bharti Airtel and IDFC are among the top notch companies that will announce their quarterly results during the week.
It is widely expected that the Reserve Bank of India will announced a 25 basis points cut in repo rate, while unveiling its monetary policy on Tuesday, 29 January 2013. Several market watchers and analysts expect 75 to 100 basis points cut in policy rate during the calendar year 2013.
Investors will also eye the data on manufacturing activity in November. The HSBC India Manufacturing PMI will be released on Friday, 1 February 2013.
Besides earnings and economic data from the domestic front, developments across the globe will also make an impact on price movements next week. The US Federal Reserve's monetary policy stance and economic outlook will be known on Wednesday, 30 January 2013.
Friday's positive close on Wall Street on the back of some upbeat earnings reports, will set up a firm start for Asian markets on Monday. Still, with a slew of economic news, results and the RBI's policy review lining up, investors are likely to tread somewhat cautiously for most part of the week..