Auto sales, progress of monsoon, macro data among key factors that may guide market next week

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Domestic and global macroeconomic data, the progress of monsoon, auto sales, Covid updates and global cues are some of the key factors that will guide the stock market in the coming week. For the week ended June 25, the benchmark BSE Sensex gained 580.59 points or 1.11% to 52,925.04. Likewise, the NSE Nifty index advanced 177 points or 1.13% to 15,860.35. Going by the buzz on Dalal Street, here are the top factors that are likely to guide the market going ahead.

Macroeconomic data and auto sales

On the macro front, the infrastructure output data for May will be released on 30 June 2021. Markit Manufacturing PMI for June will be declared on 1 July 2021. Auto stocks will be in focus as auto companies will start announcing monthly sales numbers for June starting from 1 July 2021.

FII inflows

Besides, the movement of the rupee against the dollar, crude oil prices and trend in global stock markets will dictate the direction on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will also be monitored.

US bond yields

The key thing to watch out for in the near future would be the US bond yields because any rise in yields can take out the FII money from developing countries like India to western markets and could also be a risk for emerging markets currencies. The Dollar Index, which measures the US currency against a basket of six peers, will also be closely watched.

Covid and vaccination updates

On the coronavirus front, investors would continuously watch out government’s course of action along with progress on the vaccination drive. Besides, as new Covid cases have seen a considerable decline, all eyes would be on state governments for further easing of the restrictions.

Monsoon

Progress of monsoon will be closely watched. The Indian Meteorological Department (IMD) has predicted a normal monsoon in most parts of the country in June. As per the weather department, the country is likely to experience 101% rainfall during the monsoon season. The IMD will issue the forecast for the July rainfall in the last week of June 2021.

Global cues

Overseas, China’s industrial profits data for May will be announced on 27 June 2021. The country will announce the Caixin Manufacturing PMI for June on July 1, 2021. Japan’s preliminary industrial production data for May will be announced on 30 June 2021. The US Markit Manufacturing and Euro Area Markit Manufacturing PMI for June will be declared on 1 July 2021.