Mumbai5 hours ago
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This week, there may be some stability in the market, because after the swearing-in of Narendra Modi, there will be more clarity regarding the central government. The Bharatiya Janata Party-led National Democratic Alliance (NDA) has formed the government.
Last week, there was a lot of volatility in the market due to ambiguity regarding the government. After exit polls predicted BJP getting a huge majority (more than 300 seats), the Sensex closed at 76,468, up 2,507 points.
However, on the day of election results, Sensex closed at 72,079 with a fall of 4389 points (5.74%) due to less seats for BJP. The next day on June 5, the Sensex closed with a rise of 2,303 points, on June 6 it closed with a rise of 692 points and on June 7 it closed with a rise of 1,618 points.
Here we are telling about the top 6 factors from around the world, which are likely to impact the market.
1. Retail inflation may decrease, wholesale inflation may increase
Inflation figures for the month of May may be released on June 12. Economists expect it to fall to 4.80% from 4.83% in April. In April, the decline in inflation was driven by falling fuel and light prices.
However, food inflation remains on an upward trend. In April, food inflation rate had increased from 8.52% to 8.78%. Rural inflation rate came down from 5.45% to 5.43% and urban inflation rate came down from 4.14% to 4.11%.
On the other hand, Wholesale Inflation Rate (WPI) will also be released on June 14. It is expected to rise sharply to 4% in May from 1.26% in April. The main reason for this could be fuel inflation, which is expected to increase from 1.38% in April to 7% in May.
2. IIP growth may decline to 3.9%
IIP figures are also expected to be released on June 12. Industrial production is expected to decline to 3.9% in May from 4.9% in April. Manufacturing contributes 78% to the index. Manufacturing growth may decline to 4.9% in May, which was 5.2% in April.
3. Passenger vehicle sales data will be released
On June 13, the market will also keep an eye on passenger vehicle sales. SIAM data showed total passenger vehicle sales in India rose 1.2% to 287,746 in April 2024 from a year earlier. This was less than the growth of 8.9% in the previous month.
Then market watchers had linked it to lack of demand. He said that continuity in policy making and better than expected monsoon will improve the picture. So, they will keep an eye on whether their expectations were met.
4. US to release interest rates and UK GDP
The Federal Open Market Committee (FOMC) will meet from June 11 to 12 and the US Fed will announce its policy stance on June 13. Broadly, the market expects the central bank to keep its rates at 5.25-5.50%.
Earlier in the week, on June 10, Japan will release its economic growth data and Eco Watchers survey. Then, on June 11 and 12, the UK will release jobs reports, industrial production and GDP growth. China will release its inflation data on June 12.
5. FIIs sold shares worth Rs 16,971 crore
Last week, foreign institutional investors (FIIs) sold shares worth over Rs 16,971 crore, but they bought over Rs 4,669 crore in the debt segment. Whereas DIIs made purchases worth more than Rs 5,578 crore in the cash segment. In the coming week, foreign investors may continue selling shares.
6. Market will keep an eye on two mainboard IPOs
The Rs 120 crore issue of Le Travenews Technology will open on June 10 and close on June 12. Chronox Lab Sciences will be listed on June 10 itself. Le Travelogue helps people plan their travels better and Cronox is a specialty chemical manufacturer.
In the SME segment, 3C IT Solutions, which helps companies integrate their IT solutions, Magenta Life Care, which sells mattresses and pillows, and Satrix Information Security, which offers cyber security solutions, will list on June 12.
On June 7, Sensex made an all-time high of 76,795.
After increasing the GDP estimates of the Reserve Bank, on the last trading day of the week i.e. June 7, the Sensex reached an all-time high of 76,795. However, later it came down slightly and the Sensex closed at 76,693 with a gain of 1,618 points.
At the same time, Nifty also saw an increase of about 500 points during trading and it reached the level of 23,320. Nifty closed at 23,290 with a gain of 468 points. This is the all-time closing high of Nifty.
All 30 Sensex stocks were on a rise. M&M’s shares have gained the most by 5.83%. Whereas IT company Wipro and Tech Mahindra had a rise of about 5%. Shares of Tata Steel, Infosys and Bharti Airtel have risen about 4%.