D-Street Week Ahead: Fed Rate Decision, Macro Data, Crude Oil Likely To Influence Market - CNBCTV18

Key policy action by major central banks will take centrestage across global financial markets this week, after the RBI's move to hike the repo rate — the interest rate at which it lends money to commercial banks — by 50 bps as expected last week. All eyes will be on a monthly reading of consumer inflation in India due on Monday, to assess the course of rate increases in the coming months.

Data from the US last week showed consumer prices made a fresh 40-year high of 8.6 percent in the world's largest economy in May, reinforcing the view that the Fed will keep raising rates aggressively.

Central banks around the world are faced with the Herculean task of taming sticky inflation without disrupting the pace of economic growth amid resurgent COVID infections.

Crude oil prices will also be tracked closely.

The week that was

Indian equity benchmarks suffered their biggest weekly fall in a month on Friday, dragged by weakness in financial, IT and consumer durables stocks.

A total of 34 stocks suffered weekly losses.

Investors remained on the back foot over concerns about aggressive rate hikes, after the RBI — in its first bi-monthly review since its surprise move on May 4 to hike the repo rate by 40 bps — raised its inflation projections for the year ending March 2023.

However, no increase in the cash reserve ratio — the amount of cash commercial banks have to keep parked with the RBI — aided investor sentiment somewhat.

"The RBI turned realistic by withdrawing its 'accommodative' stance and increasing its inflation forecast... However, the focus of the domestic market shifted to global macroeconomics, with investors anticipating a hawkish Fed policy next week," said Vinod Nair, Head of Research at Geojit Financial Services.

Technical view

"Despite the fact that last week's trading patterns suggest additional downside, the overall bearish momentum has moderated as the Nifty is trading above the falling resistance line. As long as the index does not fall below 15,900, there is a significant chance that it can 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 trades on either side.

Here are the key factors and events that are likely to influence Dalal Street in the week beginning June 13:

GLOBAL CUES

Date	US	Europe	Asia
June 13	Fed official Lael Brainard to 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 decision, crude oil stockpiles data, retail sales data	Eurozone industrial production data, France inflation data	China industrial production and retail sales data
June 16	Jobless claims data	BoE rate decision, minutes of last BoE meeting	Japan trade data
June 17	Fed Chair Jerome Powell to speak, industrial production data	Eurozone inflation data	BoJ rate decision

DOMESTIC CUES

Macroeconomic data

Official data on consumer inflation in India is due on Monday, June 13. Data on wholesale inflation will be released the next day.

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

FII activity

Institutional fund flows will continue to be on investors' radar, amid sustained selling of Indian shares by foreign institutional investors.

Corporate action

Company	Ex date	Purpose	Record date
Gallantt Ispat	06-Jun-22	Amalgamation	07-Jun-22
Apcotex Industries	06-Jun-22	Final dividend Rs 3	-
Aurobindo Pharma	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 issue 1:2	07-Jun-22
Rallis	06-Jun-22	Final dividend Rs 3	-
Varun Beverages	06-Jun-22	Bonus issue 1:2	07-Jun-22
Satyam Silk Mills	06-Jun-22	Right issue	06-Jun-22
AAR Commercial	07-Jun-22	Amalgamation	07-Jun-22
General Insurance Corporation	07-Jun-22	Interim dividend Rs 2.25	08-Jun-22
Pearl Global 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	EGM	-
Kansai Nerolac Paints	08-Jun-22	Final dividend Re 1	-
Asian Paints	09-Jun-22	Final dividend Rs 15.5	10-Jun-22
Asian Granito	09-Jun-22	Final dividend Re 0.7	10-Jun-22
AU Small Finance Bank	09-Jun-22	Bonus issue 1:1	10-Jun-22
Craftsman Automation	09-Jun-22	Dividend Rs 3.75	-
Elecon Engineering	09-Jun-22	Final dividend Re 1	10-Jun-22
Elecon Engineering	09-Jun-22	Special dividend Re 0.4	10-Jun-22
HDFC Asset Management Company	09-Jun-22	Dividend Rs 42	-
India Motor Parts & Accessories	09-Jun-22	Interim dividend Rs 13	10-Jun-22
Mukand Engineers	09-Jun-22	Amalgamation	10-Jun-22
PFC	09-Jun-22	Final dividend Re 1.25	10-Jun-22
Quess Corp	09-Jun-22	Interim dividend Rs 4	10-Jun-22
Silver Touch Technologies	09-Jun-22	Interim dividend Rs 0.5	10-Jun-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	-
Voltas	09-Jun-22	Final dividend Rs 5.5	-
Welspun Corp	09-Jun-22	Dividend Rs 5	10-Jun-22
CEAT	10-Jun-22	Final dividend Rs 3	13-Jun-22
LKP Finance	10-Jun-22	Final dividend Rs 3	-
LKP Securities	10-Jun-22	Final dividend Re 0.3	-
Sadhna Broadcast	10-Jun-22	Stock split from Rs 10 to Re 1	13-Jun-22
Sagarsoft (India)	10-Jun-22	Dividend Rs 3	-
Shree Digvijay Cement	10-Jun-22	Final dividend Rs 2	13-Jun-22
Tata Communications	10-Jun-22	Final dividend Rs 20.7	-

First Published: Jun 12, 2022, 01:21 PM IST

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D-Street Week Ahead: Fed Rate Decision, Macro Data, Crude Oil Likely To Influence Market - CNBCTV18
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