Dalal Sreet week ahead: What to look forward to?

The past week has proven successful for the bulls in the market. Though the market fluctuated, it ended on a positive note. The upcoming Dalal Street week is very crucial considering various economic factors. Globally, investors are eyeing this week’s decisions to plan their short-term and long-term investments. The stock market will open on Monday 6 June 2022 at 9 am.

In the past 5 trading days: the index did not raised very high, but the Nifty 50 closed at a weekly net gain of 1.42 percent. Reliance industries experienced the best weekly performances in the year so far, with a rise of nearly eight percent. Nifty IT index has risen over four percent. Overall the week proved beneficial for investors and companies in the market. The Relative Strength Index (RSI) for the week was reported at 46.47 with positive momentum. 

What to look forward to in the Dalal Street week?

The week has many economic activities that will affect the market. Starting with the Reserve Bank of India (RBI’s) meeting, the European Central Bank’s meeting, and the release of economic data from past months. June marks the second half of the year with many new reforms, changes, and adjustments to the outlook.

Reserve Bank Of India (RBI)

RBI’s thirty-sixth Monetary Policy Committee meeting (MPC) is scheduled for 6 June 2022. The result for which is expected to release on 8 June. The last meeting held on May 2, discussed the dynamics of growing inflation in the country. The repo rate was increased to 40 basis points. The change in repo rate resulted in an increased rate of interest on loans in banks like SBI and HDFC. 

The current inflation rate is estimated at around seven percent which has grown from around four percent in April. It is expected that RBI will still increase the repo rate in their next meeting. RBI governor Shri Shaktikanta Das stated in the previous meeting: the necessity to increase the repo rate. He also mentioned the actions by the committee to lower inflation rates in the country. 

The next meeting in the following week will be crucial for investors to plan short-term and long-term decisions.

European Central Bank (ECB)

The next ECB meeting is scheduled for 9th June 2022. The last meeting was conducted on 14 April 2022. Recently, ECB’s president Christine Lagarde mentioned their intentions to increase interest rates and exit negatives by end of the third quarter. Moreover, the main interest rate is -0.05 percent which is expected to increase. 

The current European inflation rate is estimated at around eight percent and is raising concerns for the citizens. ECB is expected to set new economic decisions to gain control over the inflation rate. 

The European first quarter GDP data is also expected to release this week, which will be a major decision-making factor for investors. Any down point in data will result in sell-offs across the global market. Central banks of Australia and Russia are also expected to conduct meetings this week and will pass their decisions. 

Economic Data Reports 

Along with official meeting decisions, many economic data reports are expected to release this week. They are a factor of consideration for investors. Firstly, the United States is set to release its inflation data officially on 10 June 2022. This will help global investors to decide on their investments in US-based companies. It will also be a deciding factor for the dollar index worldwide. 

China’s inflation data for May 2022 is expected to release in the week. In April the estimated rate was around eight percent. The country has aimed its Consumer Price Index (CPI) at three percent. The data expected this week will indicate its current position to lower the CPI.

India’s Production Data for April 2022 is expected to release this week. For investors in India, it will mark the track of progress in various industries. 

These were the major economic activities to look forward to in the Dalal Street week. Gold prices and crude oil prices are expected to fluctuate this week. With these decisions, investors can plan their short-term and long-term decisions. These decisions will mark the beginning of the second half of the year.