Market Triggers This Month (February 2014)

Given the recent volatility of the Stock Markets worldwide, and especially in the emerging markets, all eyes will be on the key market triggers this month, both nationally and internationally.

A few of these triggers are as listed below:

1.   IIP numbers on 12^th Feb (Wednesday) – The last reading was -2.1% (contraction), while the estimate for this month is around 1% (growth)

2.     CPI for January on 12^th Feb (Wednesday) – The previous reading was 9.87%. This is expected to come down to around 9.4%. The CPI has gained importance of late since the RBI Governor has indicated that the key monetary policies and decisions will revolve around the CPI. The Urijit Patel Committee has recommended bringing CPI inflation down to 8% by January 2015 and to 6% by January 2016.

3.     WPI for January on 14^th Feb (Friday) – The last reading for December was 6.1%. This is expected to come down to 5.7%.

4.   The new Fed Reserve Chairwoman, Janet Yellen, who took charge this month, will testify on the semi-annual monetary policy report in front of the House Financial Services Committee on 11^th Feb (Tuesday). This address might drop hints about the future policies of the Fed, including the QE tapering. The recent sell off in the global markets was due to the Fed tapering the QE to 65 billion dollars per month.

5.      Chinese Data Numbers on 12^th Feb (Wednesday) – Trade Data.

6.      Key Earnings of Tata Motors, Tata Steel, NMDC, Coal India, Hindalco, BPCL, Dr. Reddy’s, Cipla, Sun Pharma and SBI.

- By Sufiyan Sarguroh

   SIMSREE Finance Forum

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