For the week ended June 13, the nifty 50 declined 1.14 per cent, While The Sensex Fell 1.30 per cent. Broader market also declined but they still outperformed. The BSE Midcap Index Fell 0.90 per cent, whose bse smallcap slipped 0.13 per cent.
“The Indian Equity Market Witnessed Heightened Volativity Last Week, Ultimately Closing in the Red. Early optimism, Driven by Progress in Us -China Trade Negotia, Geopolitical tensions after israel launched a strike on Iran’s nuclear facilites. Bonds, “Vinod Nair, Head of Research, Geojit Investments, observed.
The upcoming week has Several Key Market triggers, including israel -ran news, the US Fed Policy Outcome, and the Progress of the Monsoon.
“Looking ahead, investors are expected to Remain cautious amid Premium Valuations and Geopolitical Risks. All eyes are now on the upcoming us fed meeting, where interest rates are likely to remaain in the apes Fed’s commentary and economic projections will be closely scrutinized for future policy cues, “said nair.
Let’s take a look at five key factors that will dictate the market trend in the coming week.
1. Israel-Airan News
News Flows Surrounding The Israel and Iran Conflict will be available be the biggest trigger for markets globally next week.
Tensions in the middle East have been escalating in recent days, raising concerns that israel -ran conflict countsify and broaden in scope.
According to the wall street journey, washington is moving towards more direct involvement in the israel -ran episode as the us million is milling down Iranian missiles fired at Israel, Insponsele Attacks on Iran’s Nuclear Sites and Military Leaders.
Meanwhile, british prime minister keir starmer said on saturday that UK is moving Military Assets, Including Jets, to the Middle East for Contingcy Support Accounts the region.
2. US FOMC Meeting
The Us Federal Open Market Committee (FOMC) Meeting, which will begin on June 17 and conclude on June 18, will be a key focus area for investors.
The us federal reserve is expected to keep interest rates unchanged amid uncertanty over the impact of us tarif policy on the economy. Recent Inflation Data Suggesst that Price Increases Have Been Largely Benign.
The US Headline Consumer Price Index (CPI) for May Increased at a Softer-That-Expected Pace of 0.1 per cent month-month-month-month and was 2.4 per cent year-oraar. Core CPI Increased 0.1 per cent month-on-month and 2.8 per cent year-on-yar.
According to Madhavi Arora, Lead Economist at Emkay Global Financial Services, The Market Continues to Price in two Fed Cuts in 2025. The problem of a cut next week is zero, with the next we Expected in October.
“While the cpi print is somewhat ressuring, there remains very little signal in the data, with firms continuing to manage tarifs for now – tariffs will likely only on Higher Inflation or Lower Profit Margins) A Few Months Down the line.
3. Crude Oil Pries
After a sharp 7 per cent surge in brent crude on Friday, Investors will also focus on the Trajectory of Crude oil prices
Brent Crude Oil Futures Gained $ 4.87, or 7.02 per cent, to settle at $ 74.23 a Barrel after Earlier SOARING Over 13 per cent to an intraday high 78.50, the strongests level senses Janury 27.50 Week, Brent Oil Pries Rallied 12.5 per cent.
India is one of the largest importers of crude oil in the world, and a problem of elevated crude oil prices will result in a higher trade deficit. This may weaken the rupee, reignite inflationary risks, and erode corporate profitability by increasing input costs.
“Crude oil prices are highly susceptible to further spikes. Disrupttions from the critical middle East Region, “Sugandha Sachdeva, Founder of SS WealthStreet, Observed.
“Higher Crude Prisis are likely to impact oil marketing companies (OMCs), which will face margin pressure, while input costs for paint and cine Companies will cause Transportation and Logistics Costs will also also surge across the economy, “Said Sachdeva.
4. FPIS ‘Movement
Foreign Portfolio Investors (FPIS) have emerged as the net sellers of Indian equities in the cash segment for the current month. In June so far, they have sold off Indian stocks worth 4,812 Crore in the cash segment amid geopolitical tensions, stretched domestic market valuations, and the rupee’s weakness.
Continuous Selling by FPIS will wear on the Indian Stock Market, Potentially Keeping It in the Lower Orbit.
5. Macro Meter
In the coming week, Several Key Macroeconomic Data, Including India’s May WPI Inflation Prints and Trade Balance Data on June 16, The Eurozone’s Consumer Price Index Data for May on Jun 18 and Us Initial Jobless claims on June 18, will be on investors’ radar.
Apart from these five key factors, several other developments, such as the program of the monsoon, the g-7 summit between june 15-17 in alberta, canada, the bank of japan ‘ Flows about trade deals between the US and its key trading partners, will be important for the market.
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Disclaimer: This story is for educational purposes only. The views and recommendations about individual analysts or broking companies, not mint. We Advise Investors to Check With Certified Experts Before Making Any Investment Decisions, As Market Conditions Can Change Rapidly, and Circumstances May Vary.
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