RBI interest rate decision, global trends to drive markets this week: Analysts-Business Journal

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The Reserve Bank of India’s interest rate resolution, home macroeconomic information and global trends will dictate phrases within the fairness markets this week, analysts stated.

Trading exercise of Foreign Portfolio Investors (FPIs) may also affect markets, they added.

“The Indian market will be closely monitoring the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting scheduled for June 6–8, 2023. Aside from that, market participants will be keeping an eye on the progress of monsoon,” stated Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

Gour additional stated that the motion of the rupee towards the greenback and crude oil costs will stay in focus.

“These factors will be closely monitored, as they have the potential to influence market sentiment. Additionally, macroeconomic indicators will play a significant role in shaping the market mood in the near-term,” Gour stated.

Domestic traders would monitor the Purchasing Managers’ Index (PMI) information for the companies sector, scheduled to be introduced, on Monday.

Shrikant Chouhan, Head of Equities Research (Retail), Kotak Securities Ltd, stated, home market contributors will control the upcoming Reserve Bank of India (RBI) coverage meet and monsoon progress.

Last week, the BSE benchmark gained 45.42 factors or 0.07 per cent, and the Nifty climbed 34.75 factors or 0.18 per cent.

“This week is going to be an eventful one as we have the MPC’s monetary policy meeting outcome scheduled on June 8. Before that, on the macroeconomic front, S&P Global services PMI on June 5 will also be on participants’ radar for cues,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd, stated.

The 30-share BSE Sensex climbed 118.57 factors or 0.19 per cent to settle at 62,547.11 on Friday. The Nifty superior 46.35 factors or 0.25 per cent to end at 18,534.10.

“As we enter a new month, investors are anticipating the release of data points such as PMI and US payroll data, in addition to the outcome of the central banks’ monetary policy meeting,” stated Vinod Nair, Head of Research at Geojit Financial Services.

Contrary to the global pattern, home indicators favour bullish sentiment, Nair stated.

“The release of domestic GDP data, surpassing expectations, and robust Q4 earnings bolstered the growth prospects of the domestic market. Additionally, auto sales for the month of May displayed a sequential recovery, boosting sentiment across the sector,” he added.





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