The stock market may see a boom this week. The market will keep an eye on RBI interest rate decision, PMI data, US job data, domestic economic data, global economic data, ECB meeting and FII-DII flow. Factors that will determine the market movement this week… RBI Interest Rate Decision This week the market will be eyeing the interest rate decision on June 6 after the RBI’s monetary policy meeting. Economists expect the RBI to cut the interest rate by 25 basis points for the third time this year to 5.75%. This can also happen because inflation is below its 4% target. The market will also keep an eye on RBI’s statement regarding the path of further rate cuts and any change in the full year inflation and growth forecast. Domestic Economic Data Apart from the RBI’s monetary policy meeting, the market’s focus will be on the final data of manufacturing and services PMI to be released on June 2 and 4. According to initial estimates, the manufacturing PMI will increase to 58.3 in May from 58.2 in April. On the other hand, the services PMI may increase to 61.2 from 58.7 last month. Apart from this, the data of bank loan and deposit growth for the fortnight (15 days) ending on 23 May will be released on June 6. Apart from this, the data of foreign exchange reserves for the week ending on 30 May will also come on June 6. US job data will focus on jobs data at the global level (unemployment rate, non-farm payrolls, jolts opening and quits for May, etc.). Along with this, the market will also keep an eye on updates related to the US bond market and Trump tariffs, which will give indications about further rate cuts by the US Federal Reserve. The US unemployment rate for May is expected to remain stable at 4.2% compared to the previous month. Meanwhile, 10-year Treasury yields in the US snapped a four-week streak of gains, falling 2.46% to 4.39%. But it is still in a broad trading range of 3.88% to 4.59% in the week ended April 11. Global Economic Data Apart from this, global investors will keep an eye on the final manufacturing and services PMI data for May from several major countries including the US, China and Japan. Inflation flash data for May, retail sales for April and the third estimate of Q1-2025 GDP numbers from Europe will also be in focus next week. ECB Interest Rate Decision The European Central Bank’s interest rate decision coming on June 5 will also be in focus. Economists expect the central bank to reduce the interest rate by 25bps to 2% despite the uncertainty caused by inflation and Trump’s trade tariffs. FII-DII Flow The market will also keep an eye on the activities of Foreign Institutional Investors (FIIs). Last week, FIIs remained net sellers, they sold shares worth Rs 418 crore. However, this is much less than the shares worth Rs 11,591 crore sold in the previous week. If seen on a month-wise basis, FIIs remained buyers for the third consecutive month. In May, FIIs bought shares worth Rs 11,773 crore. Experts expect FIIs to remain buyers in the Indian stock markets in the future as well. On the other hand, Domestic Institutional Investors (DIIs) bought shares worth Rs 33,145 crore last week, which gave strong support to equities. Their net buying for May was Rs 67,642 crore, which is the highest monthly inflow since January. Initial Public Offering (IPO) No IPO is opening in the mainboard segment this week. In the SME segment, Ganga Bath Fittings IPO will open on June 4. The issue of 3B Films will close on June 3. Talking about listing in the mainboard segment, Aegis Vopak Terminals and Schloss Bangalore will be listed in the stock markets from June 2. After this, Prostaram Info Systems will be listed on June 3 and Skoda Tubes on June 4. Talking about listing in the SME segment, trading in the shares of Blue Water Logistics, Nikita Papers and Estonia Labs will start from June 3. While trading in NR Vandana Tex Industries and Neptune Petrochemicals will start on June 4 and then in 3B Films on June 6. Last week, the Sensex fell 270 points Last week, the Sensex fell 270 points i.e. 0.33%. Nifty also fell by 102 points (0.41%). On the last trading day of last week (Friday), May 30, the market also fell. The Sensex fell 182 points and closed at 81,451. The Nifty also fell by 83 points and closed at 24,751. Out of the 30 Sensex stocks, 25 fell and 5 rose.
