Week ahead: Inflation data, rupee movement to weigh on Sensex, Nifty

In the near term, bourse patterns will be driven by international stock market trends, the rupee’s movement against the dollar, and crude oil prices.

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FIIs continued to sell aggressively in developing markets, particularly India, given the global negative mood caused by growing inflation fears, geopolitical tensions, and quicker policy tightening by central banks. As a result, analysts predict that the factor will continue to limit the upside in stock markets.

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For the eighth straight month, FIIs have been net sellers, dumping more over Rs 3.45 lakh crore since October 2021, compared to Rs 2.63 lakh crore of net purchasing by domestic institutional investors in the same period.

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In the previous week, FIIs net sold Rs 12,662 crore worth of shares, while DIIs compensated for the outflow to a large extent by buying Rs 9,611 crore worth of shares.

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India’s May inflation rate will be released on June 13, 2022. On the same day, India’s wholesale pricing index (WPI) inflation for May will be released.

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China will also release industrial production figures for May 2022 on June 15, 2022. On June 17, 2022, the Bank of Japan (BoJ) will release its interest rate decision.

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Next week, on June 14-15, the Federal Open Market Committee will have its two-day meeting, which is considered to be critical, especially following higher-than-expected inflation in May, which hit a 40-year high of 8.6%, the most since December 1981.

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Retail Sales statistics for May will be released in the United States on June 15, 2022. The US Federal Reserve (Fed) will publish its interest rate decision on June 15, 2022, following a two-day policy meeting. On June 10, 2022, the United States will release the May inflation rate.