The exit polls and election results have made their mark on Indian stock market last week, so have the GDP data and the RBI policy decision. Now it's the turn of US Fed interest rate decision to tame the bulls and bears on Dalal Street in the upcoming week.
Domestic inflation data, crude oil prices and commodity prices are also expected to guide the market this week, according to analysts.
The past week saw the market soaring sharply on Monday in response to the exit poll predictions, with some of them forecasting “400 paar” for the NDA. However, on Tuesday, as the vote counting began, the market plummeted with twice the impact, as the numbers showed the BJP at 240 Lok Sabha seats. From Wednesday, the market recovered and closed with robust gains on Friday
The BSE benchmark index Sensex, which consists of Top 30 bluechip stocks, leaped 3.69 per cent while the NSE Nifty bounced by 3.37 per cent.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, told PTI, "Now the Lok Sabha elections and the RBI policy decision are settled, attention now turns to global factors. Key areas to watch include the US Fed interest rate decision, the rupee's movement against the dollar, crude oil prices and commodity prices. Additionally, investments by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will remain under close observation.”
"Domestically, India's economic calendar is also marked with key releases. On June 12, 2024, both India's industrial production data and inflation data will be unveiled," Gour added.
The US core and consumer price inflation figures, US Federal Reserve's interest rate decision and Federal Open Market Committee (FOMC) economic projections are scheduled to be announced on Wednesday, June 12. The trends in the US data will be reflected in the Indian stock exchanges on the following day, which is Thursday.The Bank of Japan will also announce its interest rate decision on June 14.
V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, told the news agency that with major events concluding last week, the market is slowly stabilising.
