A packed week lies ahead, with the stage set for the closing show of India's longest-drawn elections, a highly anticipated India versus Pakistan cricket match, India's monthly mutual funds data, and crucial economic data releases across the globe, all vying for attention.
Modi's swearing-in as the country's Prime Minister for a historic third term will be setting the tone for the week ahead, while traders closely watch for India's inflation data and the US Federal Open Market Committee's policy later in the week.
The week ended with the Modi-led National Democratic Alliance staking claim to form the new government at the centre.
The effectiveness of policies implemented by the coalition government will determine India’s growth trajectory for the next five years, if not more, according to Moody’s Analytics' Aditi Raman.
Despite positive cues, there may not be a runaway rally in the market, according to Aditya Agarwala, head of research and investments at Invest4edu.
A packed week lies ahead, with the stage set for the closing show of India's longest-drawn elections, a highly anticipated India versus Pakistan cricket match, India's monthly mutual funds data, and crucial economic data releases across the globe, all vying for attention.
Modi's swearing-in as the country's Prime Minister for a historic third term will be setting the tone for the week ahead, while traders closely watch for India's inflation data and the US Federal Open Market Committee's policy later in the week.
The first week of June saw significant volatility in the markets as uncertainty around the Lok Sabha election results led to a panic selling on Tuesday, where FIIs recorded the highest-ever single-day sell-off of Rs 12,436 crore. However, the benchmarks recovered over the course of the week as the Bharatiya Janata Party was able to secure the support of major regional allies like Andhra Pradesh's Chandrababu Naidu and Bihar's Nitish Kumar.
The week ended with the Modi-led National Democratic Alliance staking claim to form the new government at the centre.
The effectiveness of policies implemented by the coalition government will determine India’s growth trajectory for the next five years, if not more, according to Moody’s Analytics' Aditi Raman.
The union budget, due in the September quarter, will be an early indicator of policy priorities, including short- and long-term responses to some key economic challenges, the economist said.
The Reserve Bank of India kept the repo rate unchanged for the eighth consecutive time, while maintaining its stance at 'withdrawal of accommodation'. It also revised upwards India's fiscal 2025 GDP growth target to 7.2% from 7%.
Despite positive cues, there may not be a runaway rally in the market, according to Aditya Agarwala, head of research and investments at Invest4edu.
"Markets might see some profit-booking on Monday, despite some exuberance during the opening."
