Weekly market update, June 09, 2023

Indian benchmark indices settled almost flat for the second consecutive week amid mixed cues. The domestic market had a positive start to the week, buoyed by favourable indicators such as stronger-than-expected PMI figures, sequential growth in auto sales, and robust expansion in bank credit. However, market sentiment was dampened as the RBI opted for a cautious approach by refraining from a significant cut in the inflation forecast. The central bank cited concerns over geopolitical uncertainties, the potential impact of El Nino, and the rise in the minimum support price while reaffirming their commitment to bringing down inflation to near the targeted 4%. The broader market indices outperformed its larger peers, with the S&P BSE MidCap gaining 0.82% and the S&P BSE SmallCap rising 1.64%. On the sectoral front, Nifty Auto Index, Nifty Realty Index and Nifty Metal Index led the pack this week, while Nifty IT Index and Nifty PSU Bank Index were the worst performers of the week.

The coming week is going to be an eventful one as US Fed policy outcome for cues, which is scheduled on June 14. In the following sessions, the European Central Bank (ECB) and Bank of Japan will also announce their policy decision. On the macroeconomic front, participants will be tracking IIP data, CPI Inflation and WPI Inflation during the week. Apart from these factors, the updates on progress of the monsoon will also remain on their radar.

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