This week, the RBI’s coverage determination can be the most important occasion driving buying and selling sentiment within the fairness market. At the identical time, analysts mentioned that international cues, overseas funds motion, and crude oil costs can be the opposite key elements to be careful for.
Markets have been witnessing a rebound lately. However, they added that the transfer lacks decisiveness amid lingering challenges like international coverage tightening attributable to hovering inflation and geopolitical tensions.
“RBI policy, global macro numbers and crude oil prices will set the trend for this week. The outcome of the RBI policy will be announced on June 8, and it will be important to listen to RBI commentary as a rate hike is imminent. IIP data will be released on May 10 after market hours.
“On the worldwide entrance, US jobless declare on Thursday and CPI numbers on Friday might be vital for the route of world markets,” said Santosh Meena, Head of Research, Swastika Investment Ltd.
Crude oil is continuing its northward journey, and if it does not cool off, it may hurt the sentiment of markets. FIIs are still selling, though the momentum has slowed down a bit. However, he added, there is a risk of further selling if the rupee weakens due to a rally in crude oil prices.
Last week, the BSE Sensex advanced 884.57 points or 1.61 per cent.
“With earnings season behind us, the main focus can be on the upcoming MPC’s financial coverage overview meet, scheduled throughout June 6-8. Markets have already priced in one other hike citing sticky inflation.
However, the main focus can be on commentary amid updates of a beneficial monsoon.
“Besides, the performance of global markets and movement in crude will also be in focus. On the macroeconomic front, participants will be eyeing IIP data on June 10,” mentioned Ajit Mishra, VP – Research, Religare Broking Ltd.
Yesha Shah, Head of Equity Research, Samco Securities, mentioned inflation is a key issue that would be the central level of all discussions this week as China and US inflation knowledge might be launched, other than RBI’s coverage assembly.
“Markets are likely to remain in a broader range as we continue to monitor global cues, including geopolitical developments, crude oil price movement, and institutional flows.
“RBI’s financial coverage assembly this week might be a key occasion that traders will observe,” mentioned Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd.