Indian equity markets will be guided by domestic political developments, weather conditions, macroeconomic cues, and key global indicators like the US core inflation figures in the upcoming week.
The first session of the 18th Lok Sabha will begin on June 24 for the oath or affirmation of the newly elected members and the election of the Speaker of the House. The session will conclude on July 3.
Benchmark indices continued their weekly gains, with bank stocks taking the lead, while the rupee came under pressure amid a resurgent US dollar.
"Small bearish candle on weekly charts and double top formation on intraday charts indicting further weakness from the current levels. However, the medium term texture of the market is still in to the positive side," Kotak Securities Ltd. said in a forward-looking note.
According to the national weather office, the southwest monsoon has further advanced into parts of Maharashtra, Vidarbha, Madhya Pradesh, Chhattisgarh, Odisha, and a few more regions.
The market participants will keep an eye on further progress of the monsoon. Food inflation in May was at 8.7%. Healthy crop outlook would be important towards controlling food inflation, the brokerage said.
The Nifty might see some more pullback before continuing its upward trend, according to Ruchit Jain, lead research analyst at 5Paisa Ltd. Markets are witnessing sectoral rotation as underperforming stocks gain focus. Some more profit-booking and corrections are expected, he added.
Markets Last Week
India's benchmark stock indices ended higher for the third straight week, posting a record-high weekly close. The indices, however, closed lower on Friday as investors booked profits.
The NSE Nifty 50 fell 111.15 points, or 0.47%, to close at 23,455.85. The S&P BSE Sensex fell 269.03 points, or 0.35%, to end at 77,209.90.
The domestic market witnessed minor profit booking amid concerns over the slow progress of the monsoon, resulting in underperformance in the fast-moving consumer goods sector, said Vinod Nair, head of research at Geojit Financial Services Ltd.
The NSE Nifty 50 rose 0.15% and the S&P BSE Sensex gained 0.28% this week. The Nifty Bank gained 3% for the week and emerged as a top sectoral gainer, while Nifty Auto was the worst performer.
In the broader market, the Nifty Midcap 150 and Nifty Smallcap 250 closed higher for the third week in a row.
Domestic Cues
Traders will see macro cues on the domestic front in the later part of the week.
The first session of the new Lok Sabha will convene on June 24 and newly-elected members will be sworn-in through the week. The RBI will switch nine bonds worth Rs 25,000 crore at an auction.
The central bank will release the money supply data on June 25.
On the last trading day of the week, June 28, the government will release figures of the fiscal deficit and foreign debt as well as core sector output for May. The index of eight core industries rose 6.2% in April on an annual basis.
Global Cues
China will release data on foreign direct investments in May on June 24, which will give insight on whether overseas investors continue to shy away from the world's second largest economy.
The Bank of Japan will release the core inflation data on June 25, while the Conference Board will issue the US consumer confidence forecast.
The US government will release the core inflation PCE and third estimate of gross domestic product for first quarter on June 27. Japan will also announce retail inflation figures.
The UK's revised quarterly GDP data will be released on June 28, while China composite, manufacturing and non-manufacturing PMI will be out on June 29
Primary Market Action
With two mainboard and eight small and medium sized enterprises' public issues, primary markets will remain in focus during the week. The primary offerings of Vraj Iron and Steel Ltd. and Allied Blenders and Distillers Ltd. will open for subscriptions on the mainboard space.
Diensten Tech Ltd., Akiko Global Services Ltd., Mason Infratech Ltd. and Shivalic Power Control Ltd. are among those receiving bids in the SME segment during the week.
On the listings front, shares of Dee Development Engineers Ltd. and Akme Fintrade Ltd. will debut on the exchanges on June 26, while Stanley Lifestyles will hit on June 28.
Corporate Action Ahead
Oberoi Realty Ltd., REC Ltd., Bank of Baroda, Tata Elxsi Ltd., Voltas Ltd., and IndusInd Bank Ltd. will be the big names that have record dates for their interim or final dividend in the coming week.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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