Fed rate decision, macro data, crude oil likely to influence the market
Key policy action by major central banks will take center stage in global financial markets this week, following the RBI’s decision to raise the repo rate – the interest rate at which it lends money to banks trade – by 50 basis points as expected last week. All eyes will be on a monthly reading of consumer inflation in India due on Monday, to gauge the course of rate hikes in the months ahead.
Data from the United States last week showed consumer prices hit a new 40-year high of 8.6% in the world’s largest economy in May, bolstering the view that the Fed will continue to raise rates aggressively.
Central banks around the world face the Herculean task of reining in persistent inflation without disrupting the pace of economic growth amid a resurgence in COVID infections.
Crude oil prices will also be closely monitored.
The week that was
India’s equity benchmarks suffered their biggest weekly decline in a month on Friday, led by weakness in financials, IT and consumer durables stocks.
A total of 34 stocks suffered weekly losses.
Investors remained on the sidelines amid concerns over aggressive rate hikes, after the RBI – in its first bi-monthly review since its surprise decision on May 4 to raise the repo rate by 40 basis points – raised its projections for inflation for the year ending March 2023.
However, any increase in the cash reserve ratio – the amount of cash commercial banks must keep with the RBI – has helped investor sentiment somewhat.
“The RBI got realistic in withdrawing its ‘dovish’ stance and raising its inflation forecast… However, the domestic market‘s focus shifted to the global macro economy as investors anticipated hawkish Fed policy this week. next,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Despite last week’s trading patterns suggesting further downside, the overall bearish momentum has moderated as the Nifty trades above the falling resistance line. doesn’t fall below 15,900, there’s a good chance it could test 16,800,” said Yesha Shah, head of equity research at Samco Securities.
She suggests traders keep a neutral view this week and avoid aggressive trading on either side.
Here are the main factors and events likely to influence Dalal Street during the week starting June 13:
|June 13||Fed official Lael Brainard will speak||UK GDP and industrial production data|
|June 14||UK unemployment data, Germany inflation data||Japan industrial production data, Hong Kong industrial production data|
|June 15||Fed rate decisioncrude oil inventory data, retail sales data||Eurozone industrial production data, France inflation data||Data on industrial production and retail sales in China|
|June 16||Data on unemployment insurance claims||BoE rate decisionminutes of the last BoE meeting||Japan trade data|
|June 17||Fed Chairman Jerome Powell to speak, industrial production data||Eurozone inflation data||BoJ rate decision|
Official data on consumer inflation in India is due on Monday, June 13. Wholesale inflation data will be released the following day.
Industry body SIAM is due to release a monthly report on sales, production and exports on Monday.
Institutional fund flows will continue to be on investors’ radar, amid continued sales of Indian equities by overseas institutional investors.
|Company||Date of departure||Objective||Registration Date|
|Gallantt Ispat||06 Jun 22||Merger||07 Jun 22|
|Apcotex Industries||06 Jun 22||Final dividend Rs 3||–|
|Aurobindo Pharmacy||06 Jun 22||Interim dividend Rs 4.5||07 Jun 22|
|Faze three||06 Jun 22||Interim dividend Rs 0.5||07 Jun 22|
|INEOS Styrolution India||06 Jun 22||Interim dividend Rs 105||07 Jun 22|
|MM forgings||06 Jun 22||Interim dividend Rs 6||07 Jun 22|
|NINtec Systems||06 Jun 22||Bonus number 1:2||07 Jun 22|
|Rallies||06 Jun 22||Final dividend Rs 3||–|
|Varun drinks||06 Jun 22||Bonus number 1:2||07 Jun 22|
|Satyam Silk Mills||06 Jun 22||good problem||06 Jun 22|
|Commercial AAR||07 Jun 22||Merger||07 Jun 22|
|General insurance company||07 Jun 22||Interim dividend Rs 2.25||08 Jun 22|
|Global Pearl Industries||07 Jun 22||Interim dividend Rs 5||08 Jun 22|
|GG Engineering||08 Jun 22||Stock split from Rs 2 to Re 1||09 Jun 22|
|Jagsonpal Pharma||08 Jun 22||AGE||–|
|Kansai Nerolac Paints||08 Jun 22||Final dividend Re 1||–|
|Asian Paintings||09 Jun 22||Final dividend Rs 15.5||June 10, 22|
|Asian granita||09 Jun 22||Final dividend Re 0.7||June 10, 22|
|AU Small Financial Bank||09 Jun 22||Bonus number 1:1||June 10, 22|
|Automation Craftsman||09 Jun 22||Dividend Rs 3.75||–|
|electronic engineering||09 Jun 22||Final dividend Re 1||June 10, 22|
|electronic engineering||09 Jun 22||Special dividend Re 0.4||June 10, 22|
|HDFC Asset Management Company||09 Jun 22||Dividend Rs 42||–|
|India Engine Parts & Accessories||09 Jun 22||Interim dividend Rs 13||June 10, 22|
|Mukand Engineers||09 Jun 22||Merger||June 10, 22|
|PFCs||09 Jun 22||Final dividend Re 1.25||June 10, 22|
|QuessCorp||09 Jun 22||Interim dividend Rs 4||June 10, 22|
|Silver Touch Technologies||09 Jun 22||Interim dividend Rs 0.5||June 10, 22|
|SMC Global Securities||09 Jun 22||Final dividend Rs 1.2||–|
|Tata Consumer Products||09 Jun 22||Final dividend Rs 6.05||–|
|Transcorp International||09 Jun 22||Dividend Re 0.1||–|
|Volta||09 Jun 22||Final dividend Rs 5.5||–|
|Welspun Corp.||09 Jun 22||Dividend Rs 5||June 10, 22|
|CEAT||June 10, 22||Final dividend Rs 3||June 13 22|
|LKP financing||June 10, 22||Final dividend Rs 3||–|
|LKP Titles||June 10, 22||Final dividend Re 0.3||–|
|Issuance of Sadhna||June 10, 22||Stock split from Rs 10 to Re 1||June 13 22|
|Sagarsoft (India)||June 10, 22||Dividend Rs 3||–|
|Shree Digvijay Cement||June 10, 22||Final dividend Rs 2||June 13 22|
|Tata Communications||June 10, 22||Final dividend Rs 20.7||–|
First post: STI