Industrial production and inflation data as well as global factors like the US-China trade conflict and crude oil prices will set the tone for stock markets this week, say analysts.
Liquidity concerns in the NBFC space played spoilsport for the equity markets last week and investors would keep a tab on this as well, they added.
“Going ahead, market is expected to trade based on key macro data like inflation and industrial production. How monsoon pans out will also be in focus. Now markets will turn their focus to upcoming Budget and hopes will start kicking in for reforms from the government to accelerate and increase private investment.
“On the global progress regarding US-Mexico-China trade war concerns and movement of crude oil prices ahead of OPEC meeting scheduled end of this month will remain in focus,” said Vinod Nair, Head of Research, Geojit Financial Services.
Industrial production data and inflation rate are scheduled to be announced on June 12. WPI inflation is due to come on June 14 post market hours.
“This week, we will be looking at inflation numbers. Markets will now be realigning themselves to global cues like trade war, USD INR and crude oil. These may become the driving factors now as other domestic cues take backseat,” said Mustafa Nadeem, CEO, Epic Research.
Meanwhile, the Reserve Bank Friday issued its much-awaited revised circular for resolving stressed assets, offering lenders a 30-day period to label an account an NPA, among other provisions.
“This new 30 day window will now actually put a cushion for the borrower…the powers that have been now given to lender brings a lot of clarity on the table since it will now be able to identify the bad loans, study the books and make a concrete resolution for the same. We believe it is a win-win situation for both – the lender and the borrower as it brings logically much-needed clarity. Definitely it has a positive impact on the NBFC sector,” Nadeem added.
Sanjeev Zarbade, Vice President – PCG Research, Kotak Securities said, “Key events to watch would be Fed meeting, G20 meet and later on the Union Budget in July.”
Analysts said that foreign fund flows, rupee and crude oil movement would also be crucial for the market.
During the last week, the Sensex fell 98.30 points and the broader Nifty lost 52.15 points.