RBI policy, global trends to be crucial drivers for markets this week

The RBI’s policy decision would be the major event driving trading sentiment in the equity market this week, while global cues, foreign funds movement and crude oil prices will be the other key factors to watch out for, analysts said. Markets have been witnessing a rebound recently. However, the move lacks determination amid remaining challenges like global policy tightening due to rising inflation and geopolitical tensions, they added.

“RBI policy, global macro numbers and crude oil prices will set the trend for this week. Outcome of RBI policy will be announced on the 8th of June and it will be important to listen to RBI commentary as a rate hike is forthcoming. IIP data will be released on 10th June after market hours. “On the global front, the U.S. jobless data on Thursday and CPI numbers on Friday will be important for the direction of global markets,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

“With earnings season behind us, focus would be on the upcoming MPC’s monetary policy review meet, which is scheduled during June 6-8. Markets have already priced in another hike citing sticky inflation. However, the focus would be on commentary amid updates of a favourable monsoon,” said, Ajit Mishra, VP Research, Religare Broking Ltd.

Inflation being a key factor will be the central point of all discussions this week as China and U.S. inflation data will be released, apart from RBI’s policy meeting. “Markets are likely to remain in a broader range as we continue to monitor global cues, including geopolitical developments, crude oil price movement as well as institutional flows,” said, Yesha Shah, Head of Equity Research, Samco Securities.

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