RBI MPC, PMI data, FII activity, global economic indicators to drive stock market next week

Mumbai, June 1 (IANS) The coming week is expected to be a crucial one for the Indian stock markets, with key domestic and global factors set to influence market sentiment.

These include the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, the Purchasing Managers’ Index (PMI) data, Foreign Institutional Investors (FII) activity, and important global economic indicators.

On the domestic front, the S&P Global Manufacturing PMI data for India, which will offer insights into the health of the country's manufacturing sector, is scheduled to be released on June 2.

The RBI's three-day MPC meeting will begin on June 4, with the outcome to be announced by the RBI Governor on June 6.

The committee’s decision on interest rates will be a major trigger for the markets. According to research by Bajaj Broking, globally, the US is also expected to release its PMI data on June 2.

Additionally, key data on non-farm payrolls and unemployment figures for May are expected from the US government on June 6, which could impact global investor sentiment.

In the trading week from May 26 to May 30, Indian markets witnessed a consolidation. The Nifty and Sensex dropped by around 0.40 per cent, ending at 24,750 and 81,451, respectively.

Despite the decline in benchmark indices, the Nifty Bank index managed to close 0.63 per cent higher, led by a strong performance in PSU bank stocks, which rose nearly 4 per cent.

On the other hand, FMCG stocks faced selling pressure, causing the Nifty FMCG index to fall by about 2 per cent.

Foreign institutional investors (FIIs) were net sellers in the cash segment last week, offloading stocks worth approximately Rs 418 crore.

In contrast, domestic institutional investors (DIIs) invested over Rs 33,000 crore during the same period.

Puneet Singhania, Director at Master Trust Group, noted that the Nifty ended in the red for the second consecutive week and has now dropped below the 25,000 mark. However, the index remains above its 21-day moving average.

He added that 24,500 remains a strong support level for the Nifty. A breach below this could take the index down to around 24,200. On the upside, 25,000 will act as a significant resistance level.

--IANS

pk/vd