Announcement of macroeconomic data such as industrial production and inflation, the US Federal Reserve's interest rate decision along with trends in global equities would dictate movement in the stock market this week, analysts said.
Besides, foreign fund trading activity would also guide the trends in equities.
Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services Ltd, said, "The overall structure of the market remains positive, supported by lower volatility, healthy macros, and consistent Foreign Institutional Investors (FIIs) buying."
Last week, the BSE benchmark climbed 78.52 points or 0.12 per cent, while the Nifty gained 29.3 points or 0.15 per cent.
"India's CPI and WPI inflation, industrial production data, manufacturing output will drive the markets this week. Some key global events such as US CPI data, initial jobless claims, Federal Open Market Committee (FOMC) meeting, crude oil will also be in focus," said Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd.
CPI
From the macroeconomic front, industrial production data for April and inflation rate for May would be announced on Monday. Analysts expect the Consumer Price Index (CPI) inflation for May would moderate from its current level of 4.7 per cent.
WPI
WPI (Wholesale Price Index) inflation data for May is scheduled to be announced on Tuesday. Analysts expect the WPI for May to contract 2.2 per cent. In April, the WPI declined for the first time since 2022 as it stood at a negative 0.92 per cent due to a drop in manufacturing.
Foreign Exchange Reserves
The foreign exchange reserves for the week ended June 9 and deposit and bank loan growth numbers for the fortnight ended June 2 will be released on June 16.
Interest rates by Banks
Santosh Meena, Head of Research at Swastika Investmart Ltd, said, this week is expected to be crucial as several central banks would announce their decisions on interest rates.
US Fed Policy
The outcomes of the US Federal Reserve's policy that is to be announced on June 14 is of importance. The Fed is expected to pause the rate hike cycle after 11 consecutive rate hikes. This expectation of a pause comes after Fed Chair Jerome Powell signaled in May that the central bank may soon pause rate hikes to assess the impact of the 11 hikes since March 2022.
Additionally, policy decisions by the Bank of Japan and the European Central Bank will also hold significance.
China Production data
"China's industrial production data, set to be announced on June 15, will be closely watched, as expectations of economic stimulus surround the release," Meena said.
Ex-Dividend
The companies that will go ex-dividend next week include, TCS, Cyient, Indian Bank, Canara Bank, DCB Bank, Torrent Power, HDFC Life Insurance Company, Jindal Saw, ICICI Lombard General Insurance Company, Tata Chemicals, Angel One and Power Finance Corporation.
