Markets this week are likely to be volatile and may see bouts of profit booking as investors brace for a slew of events both on the domestic and the global front, including industrial production and inflation data.
Market experts said that going ahead, the sentiment will be influenced by a combination of domestic and global factors such as inflation numbers, monsoon’s progress and outcome of Greece elections.
This week, a series of domestic and global economic data are expected to keep the market choppy, experts added.
“Stock markets witnessed smart gains last week. The short-term trend has definitely turned bullish, however profit booking at higher levels for Nifty at 5,090-5,120 cannot be ruled out,” Bonanza Portfolio Research Analyst Shanu Goel said. The BSE benchmark Sensex logged its best weekly gain in the current calendar year by rising 754 points on hopes of interest rate cut by the Reserve Bank of India (RBI) in its mid-quarter policy review.
Industrial production (IIP) growth data for the month of April will be announced on June 12, while inflation numbers for May will come out on June 14. The RBI’s policy review is scheduled for June 18.
Analysts opine that inflation numbers and industrial output data will largely determine the extent of rate cut by the RBI in its policy review.
Published 10 June 2012, 15:52 IST