Stock Market To Be Volatile This Week, Eyes On RBI Policy Decision, Says Analysts

Stock markets are expected to witness volatility this week with domestic factors such as RBI policy decision and quarterly earnings by big players driving the investor sentiment, analysts said.

Also, movement of the rupee, Brent crude and foreign institutional investors (FIIs) would be keenly watched by investors, they added.

"Among important events, participants will be closely eyeing the MPC’s monetary policy review meet this week and its outcome is scheduled on February 9. Besides, on the macro front, IIP data will be released on February 11," said Ajit Mishra, VP Research, Religare Broking.

"We have some big names like Bharti Airtel, Jindal Steel, ACC, Hero Motocorp, Tata Power, Hindalco and M&M that will announce their numbers during the week along with several others," Mishra added.

 "Markets have been witnessing volatile swings, mirroring their global counterparts and it may continue in near future. Besides, the upcoming event i.e MPC's review and earnings would further add to the choppiness," he said.

 Among others, TVS Motor Company, Union Bank of India, IRCTC, NMDC and SAIL will also announce their quarterly results.

"This week, domestic cues will dominate where RBI credit policy will be a key factor which is scheduled on 9th February. Q3 earning session is going on where the last batch of earnings will be another important factor. Apart from this, IIP data will be announced on Friday however that is scheduled after market hours," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Meena further said that global cues are also not clear where the geopolitical situation is important while rising crude oil is a key concern for our market. FIIs are still in a selling mood and their behaviour will also play an important role in the direction of headline indices, he said.

Analysts said that Indian indices had a bull run during the 1st half of the last week as the Budget was in line with market expectation.

Last week, the 30-share BSE benchmark gained 1,444.59 points or 2.52 per cent.

"This week, RBI's policy meeting will be the major event awaited by the domestic investors," said Vinod Nair, Head of Research at Geojit Financial Services.