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 decisiveness amid lingering challenges like global policy tightening due to soaring 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 8th of June and it will be important to listen to RBI commentary as a rate hike is imminent. IIP data will be released on 10th June after market hours.
“On the global front, US jobless claim 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.
Crude oil is continuing its northward journey and if it does not cool off, then it may hurt sentiment of markets. FIIs are still in selling mode, though the momentum has slowed down a bit. However, there is a risk of further selling if the rupee weakens due to a rally in crude oil prices, he added.
Last week, the BSE Sensex advanced 884.57 points or 1.61 per cent. “With earnings season behind us, focus would be on the upcoming MPC’s monetary policy review meet, which is scheduled during June 6-8.
