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


NEW DELHI – The Reserve Bank of India interest rate decision, domestic macroeconomic data and global trends will drive equity market conditions this week, analysts said.
trading activity of Foreign portfolio investors (FPIs) will also impact markets, they added.
“The Indian market will closely monitor the Reserve Bank of India Monetary Policy Committee (MPC) meeting scheduled for June 6-8, 2023. Additionally, market participants will be keeping an eye on the progress of the monsoon,” said Pravesh Gour , Senior Technical Analyst, Swastika Investmart Ltd.
Gour went on to say that the focus will remain on the rupee’s performance against the dollar and crude oil prices.
“These factors are being closely monitored as they have the potential to influence market sentiment. In addition, macroeconomic indicators will play an important role in shaping market sentiment in the near term,” Gour said.
Domestic investors would follow the Purchasing Managers’ Index (PMI) data for the services sector, which is due to be released on Monday.
Shrikant ChouhanHead of Equities Research (Retail), Kotak Securities Ltd said domestic market participants will be keeping an eye on the forthcoming launch of the Reserve Bank of India (RBI) political meeting and monsoon advances.
Last week, the BSE benchmark rose 45.42 points, or 0.07 percent, and the Nifty climbed 34.75 points, or 0.18 percent.
“This week will be an eventful week as the results of the MPC monetary policy meeting are due on June 8th. Before that, participants on the macroeconomic front will also be watching the S&P Global Services PMI on June 5 for guidance.” Ajit MishraSVP – Technical Research, Religare Broking Ltd said.
The 30-stock BSE Sensex rose 118.57 points, or 0.19 percent, on Friday to close at 62,547.11. The Nifty improved 46.35 points, or 0.25 percent, to finish at 18,534.10.
“As a new month begins, investors look forward to the release of data points such as PMI and US jobs data alongside the outcome of the central banks’ monetary policy meeting,” said Vinod Nair, head of research at Geojit Financial Services.
Bucking the global trend, domestic indicators are supporting bullish sentiment, Nair said.
“Release of domestic GDP data, beating expectations and robust Q4 results have boosted domestic market growth prospects. In addition, auto sales in May showed a sequential recovery, improving sentiment across the sector,” he added.

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