Increasing coronavirus cases and developments on the vaccine front, foreign institutional investors (FII) flow trends, RBI policy meet, auto sales numbers are likely to set the tone for Indian benchmark indices, Sensex and Nifty, this week.
Last week, the equity market ended higher, with Sensex and Nifty gaining 267 points or 0.61 per cent and 117 points or 0.91 per cent, respectively. On Friday, the 30-share BSE Sensex ended 110 points lower at 44,149 and Nifty fell 18 points to close at 12,968, ahead of Q2 GDP data. PowerGrid, Reliance Industries and TCS were among the top laggards on BSE, while NTPC, Bajaj Auto, Maruti, Tech Mahindra, L&T, Asian Paints and Bajaj Finance were among the top gainers. Among sectors, barring IT, all the other sectors closed in the green territory, with over 2 per cent gain in realty and almost 1.5 per cent rise in auto and media scrips.
Here are the top 7 factors that will lead the stock market in the upcoming week:
Coronavirus cases and vaccine developments
Investors will keep an eye on rising COVID-19 cases and development on the vaccine front. India's COVID-19 caseload inched close to 94 lakh, while the number of people who have recuperated from the disease crossed 88 lakh pushing the national recovery rate to 93.71 per cent, according to the Union Health Ministry data updated on Sunday.
Prime Minister Narendra Modi visited three-city on Saturday to review vaccine development in the country. He visited the Bharat Biotech facility in Hyderabad where he was briefed about the company's 'indigenous COVID-19 vaccine'. PM Modi also went to the Zydus Biotech Park in Ahmedabad to see the status of the vaccine developed by Zydus Cadila.
The Reserve Bank of India (RBI) Monetary Policy Committee is scheduled to meet for three days between 2-4 December 2020. The policy announcement will be made on December 4. The central bank is expected to maintain the status quo with repo rate likely to be unchanged at 4 percent and reverse repo rate at 3.35 per cent due to inflationary pressures.
Burger King IPO
Burger King India Limited, one of the fastest-growing international Quick Service Restaurant (QSR) chains in the country, will launch its initial public offer (IPO) on December 2, 2020. The price band of the offer has been fixed at Rs 59 to Rs 60 per equity share for its Rs 810 crore IPO, which will close on Friday, December 4, 2020.
Auto companies will remain in focus as index heavyweights such as Maruti Suzuki, Tata Motors, Hero MotoCorp, Mahindra & Mahindra, Bajaj Auto, Ashok Leyland, Eicher Motors and Escorts will release their monthly volume sales numbers for November.
Shares of oil and gas stocks will remain in focus as the Organisation of the Petroleum Exporting Countries (OPEC) and allies are scheduled to meet on November 30-December 1.
Extending its support to Indian markets, foreign investors infused Rs 65,300 crore in equity markets in November, the highest ever in a single month. Foreign portfolio investors (FPI) also pumped in Rs 62,951 crore in Indian markets in November, recording the second consecutive month of net buying.