InvestorQ : What are the major trading and investment cues for the week commencing on December 02, 2019?
Mary Joseph made post

What are the major trading and investment cues for the week commencing on December 02, 2019?

Dilmini Mercia answered.
2 years ago

The coming week is likely to be a mix of reaction to the previous week data and also some interesting cues for the coming week.

· GDP data came out at 4.5% on Friday evening after close of markets. While the growth is bad, it was along expected lines. Hence the negative surprise may not be too big.

· The markets will be concerned about the sharp fall in private final consumption expenditure (PFCE), which is likely to impact FMCG products. The negative growth in gross capital formation (GCF) is also expected to hit stocks like L&T and BHEL.

· The core sector data at (-5.8%) represents the second consecutive month of fall in growth along with negative IIP. That could weigh on infrastructure stocks.

· The trade deal will again be viewed with scepticism as the stand-off between the US and China continues. Markets will look for positive cues.

· The OPEC meeting is expected to increase the supply cut from 1.2 million bpd to 1.6 million bpd. This could have the impact of pushing up oil prices.

· Telecom stocks like Bharti, Vodafone and RIL could be in focus as telecom companies hike their tariffs by up to 40% during the coming week.

· The auto numbers show early indications of bottoming out as the fall in case of most of the companies has been less than anticipated. That should be positive.

· The markets will also keep a watch on the PMI Manufacturing and the PMI Services during the week. Numbers below 50 will be negative for the markets.

· Finally, the big event will be monetary policy this week. With rate cut of 25 bps already factored in, the focus will be on the dovishness of the language adopted by the MPC.