This week’s stock markets will be heavily influenced by the RBI’s decision on interest rates, the June industrial output statistics, and the continuing quarterly results from corporates, according to experts.
They said that other important variables such global market trends, changes in oil prices, and trading activities of foreign investors will also have an impact on trade.
The RBI Monetary Policy Committee (MPC) meeting, which will be announced on August 10, 2023, will be closely watched by the market. We are approaching the last round of significant firms’ Q2 results, including Adani Ports, Coal India, Hero MotoCorp, Hindalco, and ONGC, among others, and this will cause stock-specific activity, according to Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Market players will be keenly monitoring significant events on the macro front, such as manufacturing production data and industrial production data, which will be announced on August 11th, Gour added.
The movement of the dollar index, the value of the rupee in relation to the dollar, and the price of crude oil will all influence the trend, he said.
The approaching RBI policy, continuing Q1 FY24 earnings season, crude oil, US inflation data, US initial unemployment claims, and UK GDP Data this week would all have an impact on the market, according to Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.
Investors would also pay attention to the trading activity of foreign institutional investors (FIIs), as they continued to be net sellers on the stock market last week.
As the RBI prepares to publish its interest rate decision, this week will be critical from a domestic perspective. Markets are thus likely to fluctuate somewhat and in a wider range. Interest-sensitive industries are anticipated to stay in the spotlight, according to Motilal Oswal Financial Services Ltd.’s Siddhartha Khemka, Head of Retail Research.
The BSE benchmark dropped by 438.95 points (0.66%) last week, while the Nifty dropped by 129.05 points (0.65%).
According to Vinod Nair, Head of Research at Geojit Financial Services, “negative news about the US ratings downgrade, weak factory activity data from the Eurozone and China, and prolonged FII selling triggered by rising US bond yields caused widespread worries across the globe.”
Investors are now anticipating the result of the next MPC meeting, Nair said.