Week Ahead: RBI Policy, Auto Sales, FII Flow, Us Tarifs, Global Cues Among Key Triggers for Indian Stock Market

The Indian Stock Market Logged A Second Consecurate Week of Consolidation, but also a Third Straight Monthly Gain, Supported by Steady Institutional Inflows and Earnings Momentum Despiti GEOPOLITICAL and Earnings Trade concerns.

Next, Investors will monitor key market triggers in the first week of the new month. Monetary Policy Committee (MPC) Meeting by the Reserve Bank of India (RBI), Global Tariff Announcements, Monthly Auto Sales, Foreign Capital Flow, Macroeconomic Data, MARECONOMIC DATA Dictate the market direction.

Indian Stock Market Trends

Domestic Equity Benchmarks Sensex and Nify 50 Witnessed Volatily through the Week and Settled at 81,451.01 and 24,750.70, respectively. The frontline indices shed 0.4 per cent during the week and overall, wavered early in may follow-up in tensions with pakistan but rebounded after bot nations agreed to a ceasefire.

“Despite the weekly downturn, bot benchmark indices remained comfortable about their key moving averages, Signaling Resilience in the Browader Market Trend,” Said Puneet Singhania, DIED PUNET SINGHANIA, DIED PUNEET SINGHANIA, DIED PUNEET SINGHANIA Trust group.

Government Data Released Post-Market Hours on Friday Revealed that India’s Growth Pace Slowed to 6.5 per cent in Fiscal 2024-25 (FY25), Below FY24 Levels. The Momentum Picked up in the January-March Quarter of Fy25 to 7.4 per cent.

“The domestic economic indicators are favorable, like a better monsoon forecast, a benign inflation traffic, and pleasant Q4 gdp grouvth, which may protect the down Can Boost Investor Sentiments, But Stability in the Browader Market will be contracted on Strong Earnings Growth and Receading Trade Tensions, “Said Vinod Nair, Head of Resarch, GEOJITENTS LTD.

This week, the primary market will witness more action, with some new initial public offers (IPO) and Listings Slated Across the Mainboard and Small and Medum Enterprises (SMIDIM ENTERPRISES (SEME). The week will be critical from the domestic and technical points of view. Investors will track domestic macroeconomic data, geopolitical events, Along with policy outcomes.

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

RBI mpc meeting, monthly auto sales

Looking ahead, all eyes will be on the outcome of the RBI’s Mpc Meeting Scheduled for Friday, June 6, 2025. The Central Bank’s Stance on the Near-term interes Macroeconomic Signals, Will Be Critical In Shaping The Market Direction.

Additionally, with the new month beGining, Participants will track high-frequency data, including auto sales numbers and other Economic Indicators. Analysts say the market is pricing in a 25 bps rate cut, which will improve the outlook for rate-sensitive sectors.

IPO Action: 1 New Issue, 2 Listings to Hit D-Street

No new mainboard iPos will open for subscription this week, in the sme segment, one new issue will open for fiding. Among Listings, Shares of Leela Hotels (Schloss Bangalore Limited) and Aegis vopak terminals will debut on stock exchanges bse and nse on June 2, 2025.

Fii Activity

The Foreign Institutional Investors (Fiis) Turned net sellers in the cash market, offloading approximately 418 Crore. In contrast, domestic institutional investors (DIIS) remained robustly Bully Bully 33,144 Crore into the cash market, providing critical support to the indices.

“The change in Fii strategy in India, which began in april, continues in may. Fiis ware Continuous Sellers in India in the first three months of this year. The big seling began in January ( 78,027 Crore) When the dollar index peaked at 111 in mid-january, “said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

Thereafter, the Intensity of Selling Declined. Fiis turns boyers in April with a buy figure of 4,243 Crore. In May Up to 30th, Fiis Boudt Equity for 18,082 Crore through the exchanges. Global macros like declining dollar, slowing us and chinese economies and domestic macros like High GDP growth and declining inflation and interest rates are the factors driving fii inflows into Indian.

“Fiis has been boyers in autos, components, telecom and financials in the first half of May. India’s better-tha- expected gdp growth in Q4 fy25 at 7.4 per cent 7.4 per cent is an indicator that is rebounding and this is rebounding Can Lead to Revival of Corporate Earnings in FY26.

Global Cues

Last Week, Concerns Surrounding Rising Us Bonds, Trade Tensions Between the Us and The European Union (EU), and the Ongoing Legal Battle Over Us Tarifs Weighed on Market Sentation, Limiting the Scope For any meaningful recovery.

Investor Sentiment was tempered by renewed uncertainty surfaceing us trade policy, after the temporary reinstatement of trump-vee tariffs-Folling their brief removal –intruduced volatility in globality Markets.

Globally, developments in the US bond market and any updates Regarding Ongoing Trade Negotiations will continue to get control Investors will keenly watch out for any movement in the US dollar, US bond yields, the impact of us trade and tariff-Related Announcements, and Crude Oil Pries.

“A Fair Share of Trade Tensions With the Temporary Pause and the Subsequent Reinstatement of Trump’s Reciprocal Trade Policies Reiterate that the Global Market May Concerend with Macroeconomic Concern, Whiconomic Concern May Continue to create ripple effects in the emerging markets, “said Vinod Nair of Geojit Investments Ltd.

Corporate action

Shares of Larsen & Toubro (L&T), Tata Motors, Tata Steel, Tata Consultancy Services (TCS), Inox India, Bank of Baroda, Container Corporation of India (Concor) Among SEVERAL OTHERS Will Trade Ex-Dividend Next Week Starting from Monday, June 2. Check full list here

Technical View

Technically, the nifty 50 index is expected to only make a directional move. A Strong Close Above 25,200 Cold Rekindle Bulish Momentum. Read full technical analysis here

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.