Inflation numbers, progress of monsoon rains and key global developments, including the US Fed meeting, will lay the pitch for the stock market movement this week, say analysts.
The Indian markets bled on Monday morning. Experts believe that it is a reaction to the better than expected US jobs data and the high inflation numbers that are due to be declared later this week.
A CNBC-TV18 poll sees the May wholesale inflation is seen largely unchanged at 4.8% versus 4.89%. Food inflation is seen coming higher, but core inflation could fall to 2.3-2.6%. Will the Nifty rally on this expectation?
The market has seen a respite to the downtrend in the last couple of days though it was a bit disappointing the way the market came off the highs of the day.
It is a vastly more cheerful morning today. Yesterday seemed to have been a bit of a turnaround day for the market.
CARE Ratings has come out with its report on inflation data of November 2012. According to the rating agency, sticky inflation above the level of 7% and rising IIP numbers simultaneously may not prompt the Reserve Bank to reduce lending rate in the upcoming mid-quarter review of the monetary policy on December 18.
Growth concerns are what are keeping Indian investors in check as they try and deal with a faltering economy and hold-ups on issues like FDI.
Robert Prior Wandesforde of Credit Suisse, in an interview to CNBC-TV18, says with inflation numbers extremely high it is likely the central bank will hike rates. “The RBI may raise rates by 50 bps.”