Technical data

Fed rate decision, macro data, crude oil likely to influence the market

Key policy action by major central banks will take center stage in global financial markets this week, following the RBI’s decision to raise the repo rate – the interest rate at which it lends money to banks trade – by 50 basis points as expected last week. All eyes will be on a monthly reading of consumer inflation in India due on Monday, to gauge the course of rate hikes in the months ahead.

Data from the United States last week showed consumer prices hit a new 40-year high of 8.6% in the world’s largest economy in May, bolstering the view that the Fed will continue to raise rates aggressively.

Central banks around the world face the Herculean task of reining in persistent inflation without disrupting the pace of economic growth amid a resurgence in COVID infections.

Crude oil prices will also be closely monitored.

The week that was

India’s equity benchmarks suffered their biggest weekly decline in a month on Friday, led by weakness in financials, IT and consumer durables stocks.

A total of 34 stocks suffered weekly losses.

Investors remained on the sidelines amid concerns over aggressive rate hikes, after the RBI – in its first bi-monthly review since its surprise decision on May 4 to raise the repo rate by 40 basis points – raised its projections for inflation for the year ending March 2023.

However, any increase in the cash reserve ratio – the amount of cash commercial banks must keep with the RBI – has helped investor sentiment somewhat.

“The RBI got realistic in withdrawing its ‘dovish’ stance and raising its inflation forecast… However, the domestic market’s focus shifted to the global macro economy as investors anticipated hawkish Fed policy this week. next,” said Vinod Nair, Head of Research at Geojit Financial Services.

Technical view

“Despite last week’s trading patterns suggesting further downside, the overall bearish momentum has moderated as the Nifty trades above the falling resistance line. doesn’t fall below 15,900, there’s a good chance it could test 16,800,” said Yesha Shah, head of equity research at Samco Securities.

She suggests traders keep a neutral view this week and avoid aggressive trading on either side.

Here are the main factors and events likely to influence Dalal Street during the week starting June 13:

GLOBAL INDICES

Date WE Europe Asia
June 13 Fed official Lael Brainard will speak UK GDP and industrial production data
June 14 UK unemployment data, Germany inflation data Japan industrial production data, Hong Kong industrial production data
June 15 Fed rate decisioncrude oil inventory data, retail sales data Eurozone industrial production data, France inflation data Data on industrial production and retail sales in China
June 16 Data on unemployment insurance claims BoE rate decisionminutes of the last BoE meeting Japan trade data
June 17 Fed Chairman Jerome Powell to speak, industrial production data Eurozone inflation data BoJ rate decision

DOMESTIC INDICES

Macroeconomic data

Official data on consumer inflation in India is due on Monday, June 13. Wholesale inflation data will be released the following day.

Industry body SIAM is due to release a monthly report on sales, production and exports on Monday.

IFI activity

Institutional fund flows will continue to be on investors’ radar, amid continued sales of Indian equities by overseas institutional investors.

Securities transaction

Company Date of departure Objective Registration Date
Gallantt Ispat 06 Jun 22 Merger 07 Jun 22
Apcotex Industries 06 Jun 22 Final dividend Rs 3
Aurobindo Pharmacy 06 Jun 22 Interim dividend Rs 4.5 07 Jun 22
Faze three 06 Jun 22 Interim dividend Rs 0.5 07 Jun 22
INEOS Styrolution India 06 Jun 22 Interim dividend Rs 105 07 Jun 22
MM forgings 06 Jun 22 Interim dividend Rs 6 07 Jun 22
NINtec Systems 06 Jun 22 Bonus number 1:2 07 Jun 22
Rallies 06 Jun 22 Final dividend Rs 3
Varun drinks 06 Jun 22 Bonus number 1:2 07 Jun 22
Satyam Silk Mills 06 Jun 22 good problem 06 Jun 22
Commercial AAR 07 Jun 22 Merger 07 Jun 22
General insurance company 07 Jun 22 Interim dividend Rs 2.25 08 Jun 22
Global Pearl Industries 07 Jun 22 Interim dividend Rs 5 08 Jun 22
GG Engineering 08 Jun 22 Stock split from Rs 2 to Re 1 09 Jun 22
Jagsonpal Pharma 08 Jun 22 AGE
Kansai Nerolac Paints 08 Jun 22 Final dividend Re 1
Asian Paintings 09 Jun 22 Final dividend Rs 15.5 June 10, 22
Asian granita 09 Jun 22 Final dividend Re 0.7 June 10, 22
AU Small Financial Bank 09 Jun 22 Bonus number 1:1 June 10, 22
Automation Craftsman 09 Jun 22 Dividend Rs 3.75
electronic engineering 09 Jun 22 Final dividend Re 1 June 10, 22
electronic engineering 09 Jun 22 Special dividend Re 0.4 June 10, 22
HDFC Asset Management Company 09 Jun 22 Dividend Rs 42
India Engine Parts & Accessories 09 Jun 22 Interim dividend Rs 13 June 10, 22
Mukand Engineers 09 Jun 22 Merger June 10, 22
PFCs 09 Jun 22 Final dividend Re 1.25 June 10, 22
QuessCorp 09 Jun 22 Interim dividend Rs 4 June 10, 22
Silver Touch Technologies 09 Jun 22 Interim dividend Rs 0.5 June 10, 22
SMC Global Securities 09 Jun 22 Final dividend Rs 1.2
Tata Consumer Products 09 Jun 22 Final dividend Rs 6.05
Transcorp International 09 Jun 22 Dividend Re 0.1
Volta 09 Jun 22 Final dividend Rs 5.5
Welspun Corp. 09 Jun 22 Dividend Rs 5 June 10, 22
CEAT June 10, 22 Final dividend Rs 3 June 13 22
LKP financing June 10, 22 Final dividend Rs 3
LKP Titles June 10, 22 Final dividend Re 0.3
Issuance of Sadhna June 10, 22 Stock split from Rs 10 to Re 1 June 13 22
Sagarsoft (India) June 10, 22 Dividend Rs 3
Shree Digvijay Cement June 10, 22 Final dividend Rs 2 June 13 22
Tata Communications June 10, 22 Final dividend Rs 20.7

First post: STI