Consumer Durables News

Fed Rate Decision, Macro Data, Crude Oil Likely To Influence Market


Key policy action by major central banks will take centrestage across global financial markets this week, after the RBI’s move to hike the repo rate — the interest rate at which it lends money to commercial banks — by 50 bps as expected last week. All eyes will be on a monthly reading of consumer inflation in India due on Monday, to assess the course of rate increases in the coming months.

Data from the US last week showed consumer prices made a fresh 40-year high of 8.6 percent in the world’s largest economy in May, reinforcing the view that the Fed will keep raising rates aggressively.

Central banks around the world are faced with the Herculean task of taming sticky inflation without disrupting the pace of economic growth amid resurgent COVID infections.

Crude oil prices will also be tracked closely.

The week that was

Indian equity benchmarks suffered their biggest weekly fall in a month on Friday, dragged by weakness in financial, IT and consumer durables stocks.

A total of 34 stocks suffered weekly losses.

Investors remained on the back foot over concerns about aggressive rate hikes, after the RBI — in its first bi-monthly review since its surprise move on May 4 to hike the repo rate by 40 bps — raised its inflation projections for the year ending March 2023.

However, no increase in the cash reserve ratio — the amount of cash commercial banks have to keep parked with the RBI — aided investor sentiment somewhat.

“The RBI turned realistic by withdrawing its ‘accommodative’ stance and increasing its inflation forecast… However, the focus of the domestic market shifted to global macroeconomics, with investors anticipating a hawkish Fed policy next week,” said Vinod Nair, Head of Research at Geojit Financial Services.

Technical view

“Despite the fact that last week’s trading patterns suggest additional downside, the overall bearish momentum has moderated as the Nifty is trading above the falling resistance line. As long as the index does not fall below 15,900, there is a significant chance that it can test 16,800,” said Yesha Shah, Head of Equity Research at Samco Securities.

She suggests traders keep a neutral view this week and avoid aggressive trades on either side.

Here are the key factors and events that are likely to influence Dalal Street in the week beginning June 13:

GLOBAL CUES

Date US Europe Asia
June 13 Fed official Lael Brainard to speak UK GDP and industrial production data
June 14 UK unemployment data, Germany inflation data Japan industrial production data, Hong Kong industrial production data
June 15 Fed rate decision, crude oil stockpiles data, retail sales data Eurozone industrial production data, France inflation data China industrial production and retail sales data
June 16 Jobless claims data BoE rate decision, minutes of last BoE meeting Japan trade data
June 17 Fed Chair Jerome Powell to speak, industrial production data Eurozone inflation data BoJ rate decision

DOMESTIC CUES

Macroeconomic data

Official data on consumer inflation in India is due on Monday, June 13. Data on wholesale inflation will be released the next day.

Industry body SIAM is slated to release a monthly report on sales, production and exports on Monday.

FII activity

Institutional fund flows will continue to be on investors’ radar, amid sustained selling of Indian shares by foreign institutional investors.

Corporate action

Company Ex date Purpose Record date
Gallantt Ispat 06-Jun-22 Amalgamation 07-Jun-22
Apcotex Industries 06-Jun-22 Final dividend Rs 3
Aurobindo Pharma 06-Jun-22 Interim dividend Rs 4.5 07-Jun-22
Faze Three 06-Jun-22 Interim dividend Rs 0.5 07-Jun-22
INEOS Styrolution India 06-Jun-22 Interim dividend Rs 105 07-Jun-22
MM Forgings 06-Jun-22 Interim dividend Rs 6 07-Jun-22
NINtec Systems 06-Jun-22 Bonus issue 1:2 07-Jun-22
Rallis 06-Jun-22 Final dividend Rs 3
Varun Beverages 06-Jun-22 Bonus issue 1:2 07-Jun-22
Satyam Silk Mills 06-Jun-22 Right issue 06-Jun-22
AAR Commercial 07-Jun-22 Amalgamation 07-Jun-22
General Insurance Corporation 07-Jun-22 Interim dividend Rs 2.25 08-Jun-22
Pearl Global Industries 07-Jun-22 Interim dividend Rs 5 08-Jun-22
GG Engineering 08-Jun-22 Stock split from Rs 2 to Re 1 09-Jun-22
Jagsonpal Pharma 08-Jun-22 EGM
Kansai Nerolac Paints 08-Jun-22 Final dividend Re 1
Asian Paints 09-Jun-22 Final dividend Rs 15.5 10-Jun-22
Asian Granito 09-Jun-22 Final dividend Re 0.7 10-Jun-22
AU Small Finance Bank 09-Jun-22 Bonus issue 1:1 10-Jun-22
Craftsman Automation 09-Jun-22 Dividend Rs 3.75
Elecon Engineering 09-Jun-22 Final dividend Re 1 10-Jun-22
Elecon Engineering 09-Jun-22 Special dividend Re 0.4 10-Jun-22
HDFC Asset Management Company 09-Jun-22 Dividend Rs 42
India Motor Parts & Accessories 09-Jun-22 Interim dividend Rs 13 10-Jun-22
Mukand Engineers 09-Jun-22 Amalgamation 10-Jun-22
PFC 09-Jun-22 Final dividend Re 1.25 10-Jun-22
Quess Corp 09-Jun-22 Interim dividend Rs 4 10-Jun-22
Silver Touch Technologies 09-Jun-22 Interim dividend Rs 0.5 10-Jun-22
SMC Global Securities 09-Jun-22 Final dividend Rs 1.2
Tata Consumer Products 09-Jun-22 Final dividend Rs 6.05
Transcorp International 09-Jun-22 Dividend Re 0.1
Voltas 09-Jun-22 Final dividend Rs 5.5
Welspun Corp 09-Jun-22 Dividend Rs 5 10-Jun-22
CEAT 10-Jun-22 Final dividend Rs 3 13-Jun-22
LKP Finance 10-Jun-22 Final dividend Rs 3
LKP Securities 10-Jun-22 Final dividend Re 0.3
Sadhna Broadcast 10-Jun-22 Stock split from Rs 10 to Re 1 13-Jun-22
Sagarsoft (India) 10-Jun-22 Dividend Rs 3
Shree Digvijay Cement 10-Jun-22 Final dividend Rs 2 13-Jun-22
Tata Communications 10-Jun-22 Final dividend Rs 20.7

First Published:  IST



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