Credit policy, results to come under scanner

This week will be crucial for the stock markets. The Reserve Bank of India’s credit policy — to be unveiled on Tuesday — will...

This week will be crucial for the stock markets. The Reserve Bank of India’s credit policy — to be unveiled on Tuesday — will be keenly watched by market players as RBI will give indications about the interest rates.

Moreover, quarterly results of major companies and the soaring crude oil prices — now around $55 per barrel — will keep the market on its toes.

‘‘If the RBI hikes the bank rate, the market may come under pressure. Banks — which are already hit by the derpeciation in its gilt portfolio — will face the music. Even other sectors will also have a tough time,’’ said a BSE dealer.

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As a number of major companies are slated to announce results this week, the market will be full of activity. Petrochemicals and refining major Reliance Industries will unveil its results on Monday. Dealers expect RIL — the largest private sector company in terms of sales — to post a decent net profit growth on the back of a surge in refining margins and firm petrochemicals prices.

Among other companies announcing Q2 results this week are L&T, HDFC, HCL Technologies, Tata Power, Britannia, Glenmark Pharma, VSNL, Sesa Goa, Dr Reddy’s Laboratories, UltraTech Cemco, Ashok Leyland, Dabur Pharma and Cipla. LIC Housing Finance, ACC, Asian Paints, Maruti Udyog, Bank of Baroda, Bank of India, National Aluminium, Gail India, PTC India, Bombay Dyeing, NIIT Technologies, Lupin, Mahindra & Mahindra, Zee Telefilms, Ballarpur Industries, Bhel, Nestle, Grasim Industries and ONGC are also announcing their results. So will Canara Bank, Hindustan Lever, Tisco, SAIL, Oriental Bank of Commerce, Hindalco, Subex Systems, HPCL, BPCL, GE Shipping, PNB, Tata Tea, ITC and Crompton Greaves.

For the week ended October 21 the barometer 30-share BSE Sensex lost 45.67 points or 0.8 per cent to settle at 5,641.06. The S&P CNX Nifty shed 15.25 points or 0.8 per cent to settle at 1,779.75.

Profit taking was witnessed in steel, aluminium, copper, zinc, mining and shipping scrips last week as the market was bearish about China’s GDP growth. Steel, aluminium, copper, zinc, mining and shipping sectors have gained in the past few months as a result of increased demand from China and China-related businesses.