Indian equity markets are poised for a volatile trading week, as a confluence of global geopolitical tensions, crude oil price fluctuations, the upcoming US Federal Reserve policy meeting, and key domestic macroeconomic data is expected to steer investor sentiment.
The ongoing Israel-Iran conflict continues to be a significant overhang on global markets, with broader implications for risk appetite and capital flows. Analysts warn that any further escalation could add pressure on oil prices and heighten volatility in emerging markets, including India.
Key Global and Domestic Triggers
The US Federal Reserve’s monetary policy decision, scheduled for June 17–18, will be closely tracked for cues on interest rate direction and the inflation outlook. While the Fed is widely expected to maintain rates, any shift in tone could influence foreign institutional investment flows into Indian markets.
Back home, investors will be watching the release of India’s wholesale inflation (WPI) and trade balance data for May, scheduled for June 16. These figures will provide further clarity on the domestic economic trajectory and may impact short-term market movement.
Market Performance and Sectoral Trends
The past week saw a broad-based correction in Indian equities, with benchmark indices Sensex and Nifty closing over 1% lower, at 81,118 and 24,718, respectively. The sell-off was led by sectors such as:
- FMCG: –2.3%
- Realty: –2.1%
- PSU Banks: –2.5%
- Consumption: –2.2%
However, select pharma, IT, and media stocks outperformed, cushioning broader losses amid weak global cues.
Foreign institutional investors (FIIs) were net sellers, withdrawing Rs 1,246 crore from the cash segment during the week. On the other hand, domestic institutional investors (DIIs) provided support, infusing Rs 18,637 crore.
Technical Outlook
According to Bajaj Broking, the Nifty 50 index has been consolidating within the 24,400–25,200 range for the past month and is likely to remain range-bound in the absence of a decisive catalyst.
“A breakdown below 24,400 could open the door for a test of the 24,000 level, especially if geopolitical tensions intensify,” the brokerage said.
“Conversely, a sustained move above 25,000 may signal a potential trend reversal.”
With sentiment fragile and multiple global and domestic events lined up, market participants are advised to exercise caution and maintain a stock-specific approach in the near term.
–Input IANS
Geopolitical Tensions, Crude Oil Prices, And US Fed Policy To Guide Markets Next Week
Staff reporter
Indian equity markets are poised for a volatile trading week, as a confluence of global geopolitical tensions, crude oil price fluctuations, the upcoming US Federal Reserve policy meeting, and key domestic macroeconomic data is expected to steer investor sentiment.
The ongoing Israel-Iran conflict continues to be a significant overhang on global markets, with broader implications for risk appetite and capital flows. Analysts warn that any further escalation could add pressure on oil prices and heighten volatility in emerging markets, including India.
Key Global and Domestic Triggers
The US Federal Reserve’s monetary policy decision, scheduled for June 17–18, will be closely tracked for cues on interest rate direction and the inflation outlook. While the Fed is widely expected to maintain rates, any shift in tone could influence foreign institutional investment flows into Indian markets.
Back home, investors will be watching the release of India’s wholesale inflation (WPI) and trade balance data for May, scheduled for June 16. These figures will provide further clarity on the domestic economic trajectory and may impact short-term market movement.
Market Performance and Sectoral Trends
The past week saw a broad-based correction in Indian equities, with benchmark indices Sensex and Nifty closing over 1% lower, at 81,118 and 24,718, respectively. The sell-off was led by sectors such as:
However, select pharma, IT, and media stocks outperformed, cushioning broader losses amid weak global cues.
Foreign institutional investors (FIIs) were net sellers, withdrawing Rs 1,246 crore from the cash segment during the week. On the other hand, domestic institutional investors (DIIs) provided support, infusing Rs 18,637 crore.
Technical Outlook
According to Bajaj Broking, the Nifty 50 index has been consolidating within the 24,400–25,200 range for the past month and is likely to remain range-bound in the absence of a decisive catalyst.
With sentiment fragile and multiple global and domestic events lined up, market participants are advised to exercise caution and maintain a stock-specific approach in the near term.
–Input IANS
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