RBI Policy, PMI Data, FII Trends To Steer Markets Next Week

Indian stock markets are poised for a pivotal week, with multiple domestic and global factors likely to influence investor sentiment.

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, key PMI data, FII activity, and international economic updates will dominate market trends.

Manufacturing PMI To Offer Economic Insights

On the domestic front, S&P Global will release India’s Manufacturing Purchasing Managers’ Index (PMI) data on June 2, offering a snapshot of the country’s manufacturing health.

Investors and analysts will closely watch the numbers for cues on economic resilience amid global uncertainties.

RBI MPC Meeting Outcome On June 6

The RBI will begin its three-day MPC meeting on June 4, with Governor Shaktikanta Das set to announce the policy outcome on June 6. The committee’s stance on interest rates will serve as a major market trigger.

Analysts expect a cautious tone amid inflationary concerns and global monetary trends.

Global Data: US PMI, Jobs Report In Focus

Globally, the United States will release its PMI data on June 2. Additionally, investors will track the non-farm payroll and unemployment data for May, expected on June 6, for cues on the US Federal Reserve’s future rate decisions.

These data points could significantly sway global risk sentiment.

From May 26 to May 30, Indian markets consolidated, with the Nifty and Sensex losing around 0.40%, closing at 24,750 and 81,451, respectively.

Despite the drop in benchmarks, the Nifty Bank index rose 0.63%, led by a nearly 4% rally in PSU bank stocks.

Public sector bank stocks outperformed last week, driving gains in the Nifty Bank index.

However, FMCG stocks came under pressure, dragging the Nifty FMCG index down by about 2% as investors booked profits.

Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth approximately ₹418 crore in the cash segment.

In contrast, Domestic Institutional Investors (DIIs) poured in over ₹33,000 crore, providing crucial support to the market.

Technical Levels: Nifty Holds Above 21-DMA

Puneet Singhania, Director at Master Trust Group, pointed out that the Nifty closed in the red for a second straight week and slipped below the 25,000 mark, though it still holds above the 21-day moving average.

He identified 24,500 as strong support, warning that a breakdown could drag the index to 24,200. On the upside, 25,000 remains a key resistance level.

Market participants expect volatility to increase ahead of the RBI policy announcement and global data releases.

Traders and investors are likely to adopt a cautious approach while awaiting clarity on interest rate directions and economic momentum.

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