The movement in global equities, the volatility of the rupee against the dollar, and crude oil prices will determine bourse movements in the short future. Both domestic institutional investors (DIIs) and foreign portfolio investors (FPIs) will have their investments under watch.
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Tata Consultancy Services, the country’s leading software services exporter, will start off the June quarter corporate results season on July 8, followed the following day by Avenue Supermarts, the operator of the D-Mart retail chain. As a result, there may be some stock-specific movement in the market.
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The Indian rupee recovered from its all-time low of 79.06 on June 30 to trade 12 paise higher the next day at 78.94 against the US dollar, halting a five-day losing run despite government initiatives to reduce gold imports, which are straining the current account deficit.
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As the rupee dropped to its lowest level in intraday trade on July 1, 79.11, the RBI has also been occasionally intervening to strengthen the currency since February.
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On July 6, 2022, the United States will release the ISM Non-Manufacturing PMI for June. The June Non-Farm Payrolls statistics for the United States will be released on July 8, 2022.
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The Federal Reserve will issue minutes from its June monetary policy meeting, which will be eagerly monitored by investors across the world for economic development and the trajectory of interest rate hikes.
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The FOMC boosted interest rates by 75 basis points during its June meeting, the largest rise in three decades. Chairman Jerome Powell has hinted at another 50-75 basis point rate hike in July to bring inflation back to its aim of 2% without affecting economic growth.
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Oil prices were turbulent, with global benchmark Brent crude futures climbing to $120 a barrel and falling to $108 a barrel in the previous week before finishing 1.4% down.
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Oil remains a concern at $100 per barrel for importing nations like India and is anticipated to contain market potential until it falls well below that level, according to analysts.
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The constrained supply caused by geopolitical tensions continued to sustain prices, however recession fears weighed on mood and dragged prices down somewhat on a weekly basis.
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The S&P Global Composite PMI and the S&P Global Services PMI for June will be released on July 5, 2022. China will release the Caixin Services PMI and Caixin Composite PMI for June on July 5, 2022.