Week Ahead: Inflation Data, Us Tariffs, FII Flow, Global Cues Among Key Triggers for Indian Stock Market

The Indian Stock Market Consolidated for the Third Consecurable Week, but also snapped a two-white losing streak, driven by favorite domestic cues, installing fresh confidenceM This, despite the Ongoing Trade Tensions and Uncerty Surrounding Tariff Negotiations.

Next, Investors will monitor some key market triggers in the second week of June. India’s Retail Inflation, Global Tariff Announcements, Foreign Capital Flow, Macroeconomic Data, and Global Market Cues will dictate the Market Direction.

Indian Stock Market Trends

Domestic Equity Benchmarks Sensex and Nify 50 Were Range-Bond for Most of the Week, but surged on Friday to settle Near the Week’s High. Supportive domestic developments Helped Limit the Downside, with the highlight being the reserve bank of India (RBI) ‘S Monetary Policy, which took the market by surprise.

The RBI Cut the Repo Rate By 50 Basis Points to 5.50 per cent – Double the market expectation –nd reduced the cash reserve ratio (Crr) by 100 basis points to three per cent, the lowest level Since April Since April 2021, Boosting Market Sentament. This liquidity boost is expected to lower the cost of funding for banks and spur credit growth, Powering Rate-Sensitive Stocks.

On Friday, the nifty 50 logged its best day in three weeks and rose 252 points, reclaiming the psychologically Crucial 25,000-Marks AFTER Investors Rallied Behind the RBI ‘ Sensex added 738 points to end at 82,189, while both indices gained one per cent for the week.

The bank nifty outperformed, Rising 1.5 per cent to settle at 56,578.40 after Hitting a Fresh All-Time High of 56,695, Extending Its Winning Streak to Four CONSECATIVE Whowss. In the broader markets, both midcap and smallcap indices outpermed the benchmarks, reflecting a risk-on Sentiment Among Investors, with Gains Ranging Between 2.8 Per CENT and Four Per Cent.

In the coming week, the primary market will witness more action, with some new initial public offers (IPO) and Listings Slated Across the Mainboard and Small and Medium ENENERPRISES (SEME). The week will be critical from the domestic and technical points of view. Investors will track domestic macroeconomic data, geopolitical events, and sector-specific outcomes.

Here are the key triggers for stock markets in the coming week:

Inflation data

Going forward, market participants will focus on key macroeconomic data for further cues. High-Frequency Indicators Such as the Consumer Price Index (CPI) Inflation Data and the Industx of Industrial Production (IIP) will be closed to Gauge Demand TRENDS and the centenary bank Steps. Additional, the program of the monsoon and sowing patterns will be monitored due to their implications for rural consumption.

“By Front-LODING EASING Measures, The RBI has underscored its committee to revival domestic growth amid amid global uncertaintiies. Who such a bold apps experted to UNFOLDOLLY, this decis Action Reinforces Confidence in its Intent to Support Economic Recovery While Managing Inflation Risks, “Said Ajit Mishra, – – SVP, Research, Religare Broking Ltd.

IPO Action: 4 new issues to hit d-street

One Mainboard iPO, Oswal Pumps IPO, will open for subscription this week, while three new sme issues will also open for five for five days. Among Listings, no new ipo-concluded companies are scheduled to be debut on the stock exchanges in the coming week.

Fii Activity

Foreign Institutional Investors (Fiis) Remained Net Sellers, Offloading 3,565 Crore in equities. However, Strong Domestic Institute Flows Offset the pressure, as domestic institutional investors (DIIS) Infused 25,513 Crore into the cash segment, providing solid support to the broader market.

According to Ionic Wealth by Domestic Brokerage Angel One, Fiis Hold 18.8 per cent of Indian rights, Compared to 30 per cent in other emerging markets (EMS), Offering “Significant ROOM for Capital Infusion”.

Chemicals, Telecom, and Financials are the sectors atracting fiis, driven by strong structural themes like the china+1 strategy. India’s Unique Mix of Consumption-Led Growth, Robust Capex Cycles, and High-Return-On-Equity Companies Makes Makes IT A Strong Investment Case.

Global Cues

On the global front, developments in trade negotiation and movements in us bonds yields will continue to influence investor Global UncertainTies and Tariff-Related Risks Could Keep Markets on Edge and Add to Market Volatily.

According to Market Analysts, Profit Booking was Visible Last Week Due to the Ongoing Global Unce here. Mid- And Small Caps Outpermed Large Caps, Driven by Better Earnings and Valuations. A mildly Positive Bias Emerged from Strong Us Job Data and Expectations of Easing Us-China Trade Tensions.

“Benchmark indices attempted recovery after FIS Turned Net Buyers, Encouched by Strong Domestic Economic Economic Indicators Amidst A Weaqing Dollar and Us Bond Yields, Us Bond Yields, Us Bond Yields, Fostering a ‘live-on-on-on-on-the-day’ Stratgey,” Said Vinod Nair of Geojit Investments.

“While China’s Rare Earth Restrictions Pose Long-Term Risks and Investors Await The Inflation Print in the Us, The Aggresive RBI Rate Cut, Backed by Cooling Infillment and A Steady Gdp Outloom, Support Investor Confidence Amidst The Ongoing Global Uncertains, “Added Nair.

Corporate action

Shares of Adani Ports & Sez, Asian Paints, Adani Enterprises, Ambuja Cements, Adani Total Gas, Piramal Enterprises, Among Several Others, Will Trade Ex-Dividend Next Week Starting from Monday, Jin 2. Shares of some stocks will also also trade ex-bonus and ex-split. Check full list here

Technical View

Technically, nifty 50 has approached the upper band of its prevailing consolidation range of 24,500–25,100. “A Decisive Breakout Above 25,200 would mark the beGinning of a fresh uptrend, with potential to gradually move Toward the 25,600–25,800 zone,” Said Ajit Mishra of Religare.

On the downside, the 24,400–24,600 range is expected to act as a strong support zone during any correative phase. Bank nifty has broken Above the key 56,000 mark after trading in a tight range for over a month. Mishra now expects it to move towards 58,000, making this segment Crucial for Browder Market Direction.

In case of a Dip, the 55,350–56,000 range is likely to provide strong support. For the Market’s Trading Strategy, Mishra Maintains a Positive Outlook and Sugged ‘Buy on Dips’ Unless Nifty 50 Decissively Breaks beLow 24,600.

However, He Clarified that Investors Should Remain Selective and Focus on Fundamentally Strong Stocks in Sector Such as Banking, Auto, and Real Estate, Which Are Poise to Benefit from Lower Interates Rates.

Other sectors may contribute on a rotational basis. Caution is warranted in area facing margin pressures or global headwinds, such as FMCG and it. Traders should Remain Agile and Well-Informed, Especially in Light of the Macroeconomic Data and Persistent Global Uncertaintiies.

Disclaimer: The views and recommendations provided in this analysis are that of individual analysts or broking companies, not mint. We Strongly Advise Investors to Consult With Certified Experts, Consider Individual Risk Tolerance, and Conduct Thorough Research Before Making Investment decisions, as market customs Rapidly, and individual circumstances may vary.