India Week Ahead: Q3 Earnings, Macro Eco Data, U.S-China Trade Talks To Guide Markets

Indian markets traded weak throughout the past week, and finally the selloff on Friday gave up much of the gains. Sensex fell 424 points (1.15%), and Nifty 126 points (1.14%) on Friday. For the week, Nifty gained 0.4%, Sensex closed up 0.1% and Bank Nifty rose 0.6%.

Zee Ent 12.2%, Bharti Infratel 10%, Bajaj Auto 9.5%, Tech Mah 7.8%, Titan 6% Eicher Motors 6% and Hero MotoCorp 4.6% were among Nifty gainers.

Tata Motors -17%, Indiabulls Hsg -9.4%, NTPC 5.7%, Vedanta -4.9%, JSW Steel -4.9%, Power Grid -4.9%, L&T -4.8% were among Nifty losers.

For the week, Nifty resistance is seen at 11,110, 10,190 whereas support seen at 10,775, 10,700 level.

Q3 earnings
The last leg of Q3 earnings will be released this week. Motherson Sumi, Eicher Motors, Sun Pharma, Coal India, Hindalco, Oil India, NBCC, Bosch, Fortis Health, Bharat Forge and Reliance Capital will release their third quarter earnings this week.

Macro eco data
The week will see a slew of macro economic data release. December IIP data will be released on Tuesday, and is expected to be at 3.4%, January CPI data will also be released at the same time, is expected to be at 2.6%. January WPI expected Thursday noon is expected to be around 4%.

Arun Jaitley back at North Block?
Arun Jaitley who was in U.S. for his health treatment returned on Saturday. Reports suggest he is expected to take charge at Finance Ministry and present in Parliament for debate on Budget this week. Railway Minister Piyush Goyal presented the interim budget in the absence of Arun Jaitley.

Parliament session ends
Budget session of Parliament ends on Wednesday. This is one of the shortest Parliament sessions which saw Bill being passed for reservation of economically weaker section in general category in just two days.

Essar Steel resolution case in SC
The Supreme Court will be hearing a plea by operational creditors of Essar Steel. Operational creditors filed plea to raise objections to ArcelorMittal’s bid for Essar Steel. Also, NCLAT has asked NCLT to decide Essar Steel insolvency case by February 11. Essar Steel owes nearly Rs 50,000 cr to a consortium of banks.

U.S. Commerce Secretary in India
India could lose a vital U.S. trade concession, under which it enjoys zero tariff on $5.6 billion of exports, amid a widening dispute over its trade and investment policies. Trigger for latest downturn in trade ties was India’s new rules on e-commerce that restrict the way Amazon.com Inc and Walmart-backed Flipkart do business in a rapidly growing online market set to touch $200 billion by 2027. U.S. Commerce Secretary Wilbur Ross is expected to raise concerns about the e-commerce policy and data localisation.

U.S.-China trade talks
U.S.government officials will meet key Chinese government officials in Beijing
on Thursday-Friday for the third round of talks after the escalation of the ongoing trade war with China. Talks come amid a deadline of March 1 which is a 90-day tariff truce agreed earlier by both the countries. U.S. has earlier warned of imposing tariffs worth $200 billion on Chinese imports.

Lokpal Selection Committee meet
A Lokpal search committee will meet on Wednesday to discuss appointment of Lokpal. A joint drafting committee has been set up, it will prepare a new bill and introduce it in the next session of Parliament. This development cones after Maharastra CM urged corruption crusader Anna Hazare to end his fast. Anna Hazare was on fast protesting against delay in selecting Lokyuktas.

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