Equity markets this week will be largely guided by trends in global stocks, foreign funds' trading activity and progress of monsoon, analysts said.
"The market will respond to domestic and global cues, crude oil prices, trends in global markets and investment by Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) in the coming days," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.
Markets last week
Benchmark indices Sensex and Nifty closed at fresh lifetime highs on Friday. According to analysts, a steady recovery in global indices, especially in the US, played the catalyst in the surge in domestic equities last week.
The 30-share BSE index zoomed 466.95 points or 0.74 per cent to settle at a record closing high of 63,384.58 on Friday. The index went ahead of its earlier lifetime high of 63,284.19 on December 1 last year.
The NSE Nifty climbed 137.90 points or 0.74 per cent to end at its lifetime peak of 18,826. Its previous record peak was 18,812.50.
Market analysts attributed the rally in the markets to the fact that the US Federal Reserve did not raise interest rates, while positive global cues and foreign institutional investors (FIIs) turning net buyers of local equities also supported the uptrend.
Monsoon season
"The Indian market will be closely monitoring the progress of the monsoon season. Globally, there is expected to be an increase in volatility in the US market over the coming week. This is due to the upcoming semi-annual testimony of Fed Chairman Powell to Congress," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
"Going ahead, we feel the performance of the US markets will continue to play a key role," said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.
PM Modi's US visit
Prime Minister Narendra Modi will be visiting the US from June 21-24. His visit will take place amid rising concerns over China's assertiveness in the Indo-pacific region and the desire of the US to move most of its business away from China and to other friendly countries or back home.
Jerome Powell testimony
Fed Chair Jerome Powell will likely face questions on the Fed's recent pause on rate hike and his outlook for the economy before the US Congress on June 21. Powell has already indicated that there could be two more increases this year with the first one in July.
Oil prices
Investors will also track the movement of rupee against the US dollar and crude oil prices. In the week ended on June 16 Brent Crude saw a jump of 2.4 per cent to settle at $76.61 per barrel. US West Texas Intermediate on the other hand closed at $71.78 per barrel. This jump in demand was due to the growing Chinese demand.
Corporate action
Hindustan Unilever, Oberoi Realty, Tata Steel, Polycab India, Craftsman Automation, Bank of India, Meghmani Finechem, CEAT and Newgen Software Technologies will turn ex-dividend next week. IndiaMART InterMESH and Blue Star will go ex-bonus next week.
With inputs from Agencies
