Indian stock market: Investors’ focus on inflation data, Modi 3.0, US Fed meet

Indian stock market will be guided by both global and domestic factors including the US Federal Reserve interest rate decision, India’s inflation data, and policy decisions of the BJP-led coalition government in the week ahead.

On June 12, the Federal Reserve will release US core and consumer price inflation figures, alongside the interest rate decision and Federal Open Market Committee (FOMC) economic projections.

Bank of Japan is also slated to announce its interest rate decisions next week.

Investors will closely track domestic industrial production data and inflation data to be released on June 12.

India’s retail inflation eased slightly to 4.83 per cent in April, down from 4.85 per cent in March.

However, consumer food price inflation surged to 8.70 per cent from 8.52 per cent.

According to news agency ANI citing experts, the market will also have an eye on the portfolio allocation under the new government.

“We believe volatility is likely to decrease now that major events are behind us, with the focus shifting to domestic macroeconomic data such as IIP, CPI, and WPI for further signals. Additionally, global cues, particularly the upcoming US Fed meeting, will be closely watched by participants. The recovery following the post-election decline suggests resilience among participants, and we expect the prevailing tone to continue,” said Ajit Mishra, SVP, Research, Religare Broking Ltd., as per ANI.

After a strong rally by benchmark indices on June 3 following exit polls’ prediction of majority for the BJP, the Indian stock market had crashed on the results day as incumbent BJP could not secure the majority on its own.

On June 4, the Sensex declined by a whopping 4,389.73 points while Nifty fell by 1,379.40 points. 

Investors had lost around 31 lakh crore in the stock markets after the actual results. The combined market cap of BSE-listed firms also retreated to 394 lakh crore on the day, from 425 lakh crore. 

However, last week the BSE benchmark gained 2,732.05 points or 3.69 per cent and Nifty rose 759.45 or 3.37 per cent.

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Published: 09 Jun 2024, 05:58 PM IST

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