The outcomes of the Reserve Bank of India’s (RBI) monetary policy meeting, as well as global indications, will determine the direction of the stock market next week. Foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will have their investments tracked.

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Several factors, such as the rupee’s swings against the US dollar, volatility in crude oil prices, and monsoon progress, would influence investors’ risk-taking appetite.

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The rise in oil prices affects India’s import bill because the country imports most of its fuel requirements. The cost of purchasing crude oil rises as the rupee falls. The Monetary Policy Committee (MPC) of the RBI will meet on June 6-8, 2022.

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Following the 40 basis point off-cycle rate rise on 4 May 2022, the RBI is largely likely to hike the policy rate again. The April industrial output figures for India will be released on Friday (10 June). In March 2022, India’s industrial production increased by 1.9% year on year, up from a downwardly revised 1.5% increase the prior month.

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The arrival of the southwest monsoon rains sooner than forecast has aided to alleviate investor worries about food prices, but in the following weeks, the market will closely monitor the development of the rains, which are essential to crop harvests, farm revenue and rural consumption.

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The United States will release trade statistics for April in the international market on Tuesday, June 7, 2022. In March 2022, the US trade deficit reached a new high of $109.8 billion. 

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China’s May trade figures will be released on Thursday, June 9, 2022. China’s trade surplus increased to $51.12 billion in April 2022, up from $40.89 billion the previous year. On Friday, June 10, 2022, the United States and China will release their May inflation figures.