The geopolitical pot is boiling. If that is not enough, the Fed’s aggressive tone on rate hike is keeping market participants on the edge. As the noise over LIC IPO hits a crescendo, do keep a watch on how the next week pans out.
Given the sheer proportions and magnitude at play, the LIC’s upcoming IPO — India’s biggest ever public listing — continues to make waves. If everything goes according to plan, the insurance behemoth expects to launch the mother of all IPOs as early as next month. Though the size of the public issue is under wraps, one just can’t miss the guessing game frenzy. As the ball gets rolling with mega roadshows to connect with top-notch investors, the IDBI Bank stake sale comes up next on the Centre’s checklist.
As the economy looks to get on to the running track, the ongoing disinvestment process will for sure come as a shot in the arm for the government.
Cheer is coming back to corporate boardrooms too as India Inc’s quarterly net profit holds up to the Omicron variant. Is it a sign of things to come, with private CAPEX still playing catch-up in the economic revival story?
Moving to markets, the madness seen earlier in the week may have subsided, but the participants are still having anxiety attacks over the Ukraine issue as the US makes a last-ditch% attempt to avert a Russian invasion over its neighbour.
There are other pain points as well, as the Street is getting the blues over the Fed’s hawkish tone and aggressive rate hike bets. Even the jump in inflation is keeping things fragile.
February 21 (Monday)
Japan PMI: The au Jibun Bank Japan Manufacturing PMI came in revised upwards at 55.4 in January 2022 as against a preliminary reading of 54.6 and after a final 54.3 a month earlier. This marked the strongest growth in factory activity since February 2014 even as the chip shortage hurt industries.
Services PMI plunged to 47.6, from 52.1 in December 2021 and a flash reading of 48.8. Composite PMI dropped to 48.8 from a final 52.5 a month earlier.
The flash data for February are expected on Monday. A print above the 50 mark denotes expansion while anything below it signals contraction.
February 22 (Tuesday)
US PMI: The US economy continued to show growth impulses as IHS Markit Manufacturing PMI was revised higher to 55.5 in January from a preliminary 55. But it signalled the weakest rise in factory activity since October 2020, as output growth was muted.
The flash readings of manufacturing, services and composite for February are all due on Tuesday.
February 24 (Thursday)
US Initial Jobless Claims: The number of Americans filing new claims for unemployment benefits increased by 23000 to 248000 in the week ended February 12, compared with market expectations of 219000. How is the following week to February 19 going to shape up on the jobs front?
February 25 (Friday)
Bank Loan Growth: The value of outstanding loans in India jumped 8.2% in January 2022 over the same month in the previous year. The next set of numbers will show whether this rising momentum sustains itself in the days ahead.
Credits: Article from Moneycontrol.com
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