Daijiworld Media Network - Mumbai
Mumbai, Jun 1: Indian stock markets are gearing up for a pivotal week ahead, with several domestic and global developments poised to shape investor sentiment and trading dynamics.
On the home front, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is set to begin its three-day meeting on June 4, culminating in an announcement from the RBI Governor on June 6. The committee’s stance on interest rates will be a crucial factor in determining market direction.
Additionally, India’s S&P Global Manufacturing PMI, a key gauge of the manufacturing sector’s health, will be released on June 2. This data will offer fresh insights into the country’s economic momentum.
Globally, traders will keep a close eye on the US PMI numbers, also expected on June 2, alongside the US government’s release of non-farm payrolls and unemployment figures for May on June 6. These data points are likely to influence risk appetite and capital flows across emerging markets, including India.
Reviewing the market performance for the previous week (May 26–30), Indian benchmarks experienced a period of consolidation. The Nifty and Sensex each declined approximately 0.40 percent, closing at 24,750 and 81,451, respectively. However, the Nifty Bank index defied the overall trend, gaining 0.63 percent thanks to a nearly 4 percent surge in PSU bank stocks.
On the other hand, FMCG stocks came under pressure, dragging the Nifty FMCG index down by about 2 percent.
Foreign institutional investors (FIIs) turned net sellers, offloading shares worth around ?418 crore in the cash segment. In contrast, domestic institutional investors (DIIs) maintained a bullish stance, pumping in over ?33,000 crore during the week.
Puneet Singhania, Director at Master Trust Group, observed that the Nifty posted a second consecutive weekly loss and slipped below the key 25,000 mark. However, he noted that the index continues to trade above its 21-day moving average, suggesting underlying strength. “Support at 24,500 is critical,” Singhania said, warning that a breach could trigger a drop toward 24,200. “On the upside, 25,000 remains a significant resistance level,” he added.
With multiple data releases and the crucial RBI decision looming, investors are bracing for an action-packed week that could set the tone for the month ahead.