RBI policy review, global trends to dictate stocks this week: Analysts

Agencies
September 27, 2020

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New Delhi, Sept 27: Stock markets are expected to consolidate in near-term due to economic uncertainty and a host of factors such as RBI monetary policy, car sales and macroeconomic data and global cues would dictate the direction in this holiday-shortened week, analysts said.

They said that despite a relief rally on Friday markets are likely to remain volatile amid resurging coronavirus cases in Europe.

The RBI's monetary policy review on October 1 and auto sales numbers would be among the key events for investors. The RBI's monetary policy committee will be meeting for three days from September 29.

Indian equity benchmark index Sensex declined by 3.83 per cent or 1,457.16 points and the broad-based Nifty tumbled 4.04 per cent last week.

The stock indices declined for six straight sessions to Thursday, plunging by more than 7 per cent due to growth concerns after resurgence in coronavirus cases globally.

The markets, however, cut short their losses and rallied over 2 per cent on Friday after reports that the US lawmakers were working on a stimulus deal that could be voted on as early as this week.

"We expect market to consolidate in near term given the rising global virus cases, economic uncertainty and continuous FII selling for past few sessions.

"This week, investors would watch out for GDP data of the US and the UK, PMI data for the US on the global front, while on the domestic front RBI's monetary policy along with infrastructure output would provide direction to the market, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

The PMI data for the manufacturing sector is scheduled to come on Thursday.

"This week, participants will be closely eyeing the outcome of MPC's monetary policy review meet scheduled on October 1. Also, they would be eyeing auto sales number which starts pouring in the first week of every month. On the global front, COVID-related updates and performance of world indices will also be in focus," Ajit Mishra, VP - Research, Religare Broking Ltd said.

Also, updates over the US stimulus measures would be tracked by investors.

Samco Securities, Senior Research Analyst, Nirali Shah said in this holiday-shortened week, markets are expected to be watchful of RBI's MPC meet. Markets will remain closed on Friday for Mahatma Gandhi Jayanti.

"In spite of the rally seen on Friday, the market is expected to remain volatile and directionless in the absence of solid triggers. Global cues will continue to be in focus as a resurgence in virus cases around the world, leads to more restrictions and more pressure on the economic recovery," Vinod Nair, Head of Research at Geojit Financial Services said.

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News Network
November 26,2024

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Mangaluru: The coastal districts of Dakshina Kannada and Udupi are witnessing a fascinating weather pattern, with chilly early mornings giving way to dry, sweltering afternoons. Over the past two days, dense fog blanketed the rural landscapes, while urban centers like Mangaluru felt the stark contrast of brisk mornings and peak afternoon heat.

The India Meteorological Department (IMD) noted that in rural areas, the morning chill caused temperatures to dip by one to two degrees Celsius below the seasonal norm, intensifying the fog. Monday saw Mangaluru recording a maximum temperature of 33.3°C and a minimum of 22.6°C, reflective of the sharp day-night variation.

While mornings painted a serene picture with mist-covered trees and a cool ambiance, the afternoons proved relentless, with temperatures soaring between 11 am and 3 pm, offering little respite. Currently, there are no signs of rainfall, with forecasts predicting the continuation of this dual weather pattern for the coming days.

Local residents have mixed feelings about this weather trend. Farmers in rural areas appreciate the cool mornings that ease early chores but express concerns over the dry afternoons, which may affect crop irrigation if the dry spell prolongs. In contrast, urban dwellers are enjoying the foggy mornings but brace for the scorching afternoons.

Meteorologists attribute the sudden chill to shifts in atmospheric pressure along the coast, a precursor to possible weather transitions in December. Whether this pattern persists or leads to unexpected changes remains to be seen, but the twin districts are clearly caught in nature's dramatic play of contrasts.

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News Network
November 18,2024

Advisors to US President-elect Donald Trump have instructed his allies and associates to refrain from using the inflammatory language they previously employed when discussing issues related to migrants and the deportation of asylum seekers, in a bid to avoid “looking like Nazis.”

US media reports said that Trump’s associates had been asked to stop using the word “camps” to describe potential facilities that would be used to accommodate migrants rounded up in deportation operations across the country.

The reports said the US president-elect’s allies had been ordered to stave off such charged terms as they would bring to mind “Nazis,” and be used against Trump.

“I have received some guidance to avoid terms, like ‘camps,’ that can be twisted and used against the president, yes,” one Trump ally told American monthly magazine Rolling Stone.

“Apparently, some people think it makes us look like Nazis.”

The presidential advisers also cautioned surrogates and allies to keep racist terms, which have dogged Trump’s campaign, out of their remarks.

They said with Trump’s heated rhetoric that used to compare undocumented immigrants to “animals” and his slight that they are “poisoning the blood of our country,” detractors did not need to reach too far to find parallels to Nazi Germany.

Stephen Miller, who Trump tapped to be his deputy chief of staff of policy, specifically used the word “camps” to describe holding facilities that he hoped the military could put together for immigrants.

Tom Homan, who served as the acting director of Immigration and Customs Enforcement and is chosen by Trump to be in charge of the US borders, was no stranger to such language.

“It’s not gonna be a mass sweep of neighborhoods,” he said in an interview earlier this week. “It’s not gonna be building concentration camps. I’ve read it all. It’s ridiculous.”

Becoming a little more forthright about the new government’s aggressive deportation plans, Homan likened the early days of the Trump administration to the initial invasion of Iraq in 2003.

“I got three words for them – shock and awe,” he said. “You’re going to see us take this country back.”

Trump made immigration a central element of his 2024 presidential campaign but unlike his first run, which was mainly focused on building a border wall, he has shifted his attention to interior enforcement and the removal of undocumented immigrants already in the United States.

People close to the US president and his aides are laying the groundwork for expanding detention facilities to fulfill his mass deportation campaign promise.

The businessman-turned-politician deported more than 1.5 million people during his first term.

The figure do not include the millions of people turned away at the border under a Covid-era policy enacted by Trump and used during most of Biden’s term.

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News Network
November 26,2024

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Former minister and ex-MLC C M Ibrahim claimed that he still heads the original JD(S) and asked former prime minister and party supremo H D Deve Gowda to cut ties with the BJP, so that the party can be strengthened again. He also said options are being explored to either strengthen the JD(S) or to float a new regional party.

He was speaking to media persons, in Mysuru, on Monday, after meeting JD(S) MLA and former minister G T Deve Gowda, who has expressed his displeasure that he has been sidelined in the party and the party leaders have indicated his retirement from politics.

He stated, “If Deve Gowda had joined the Congress, during the last Assembly election, he would have been a minister now. We retained him in the JD(S), to strengthen the party. Now, efforts are being made to strangulate Deve Gowda’s political career. I have discussed all matters with Deve Gowda. In two days, I will start a Karnataka state tour and meet some leaders. After that, I will meet Deve Gowda again, and then decide on the further course of action.”

Ibrahim said, “The original JD(S) is ours. I am still its state president. All documents and accounts are in our name. Even now, if Deve Gowda leaves BJP’s company and returns, we will build the JD(S) again”.

“Union Minister H D Kumaraswamy should mend his ways and stop making JD(S) into a family-owned company. The JD(S)’s situation has become hopeless. Its love for the BJP is over. He should understand this,” he said.

“When I was with Kumaraswamy, he spent just Rs 4 crore in Channapatna and won by 20,000 votes. Now, without me, he spent Rs 150 crore and still lost by 25,000 votes. Without Muslims’ support, the JD(S) cannot win a single seat. Now, it is proved that 19 MLAs of the JD(S) won in 2023, because of Muslims,” he added.

Speaking on other options available, Ibrahim said, “We have not yet decided to go with the Congress. We are only considering to establish a third front. Whether it is founding a new regional party, forming a third front, or strengthening the JD(S), will be decided shortly.”

Earlier during the day, before meeting Deve Gowda, Ibrahim had said, that 12 to 13 JD(S) MLAs were dissatisfied with the party, but like Deve Gowda, were enduring pain.

“Now, I have started the task of uniting them. I as the JD(S) state president, it is my responsibility to address our MLAs’ grievances. At present, the JD(S) is on fire and all JD(S) MLAs want to protect their respective constituency. Hence, they have started speaking one by one,” he said.

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