Investors to monitor CPI data for July projected to show significant increase
Investors are closely monitoring the domestic CPI data for July, which is projected to show a significant increase due to rising food prices, says Vinod Nair, Head of Research at Geojit Financial Services.
Amid rising inflation concerns, investors are closely monitoring the domestic CPI data for July, which is projected to show a significant increase due to rising food prices, says Vinod Nair, Head of Research at Geojit Financial Services. The Indian market experienced bearishness during the week that focused on economic data as inflation concerns dented domestic sentiments, he said.
The week began with moderate gains, led by strong performances in the pharma and IT sectors. However, uncertainties surrounding economic data releases and the RBI's policy announcement hindered substantial moves.
Inflation worries resurfaced as the RBI raised their CPI forecast by 30 bps to 5.4 per cent, increasing the potential for a prolonged rate-cut trajectory. Additionally, the RBI's move to manage liquidity through the incremental CRR impacted banking sector sentiment, albeit with a limited effect as expected, he added.
Global markets faced volatility due to weak signals such as declining Chinese exports and the rating downgrade of US small and mid-sized banks. Despite lower-than-expected US CPI and better-than-anticipated UK GDP figures, global market sentiment remained subdued.
Rupak De, Senior Technical analyst at LKP Securities said in the short term, there's a possibility that the index might decline towards the 19,300 level. On the upside, there's a resistance level situated at 19,500.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Top 7 SIP Mutual Funds in 1 Year: What Rs 10,000, Rs 15,000, and Rs 20,000 SIPs have given in each fund
Women loco pilots speak about their struggle; many men have to be informed even for 'washroom break' in a moving train
Special Live Trading Session on Saturday: Know why BSE, NSE will remain open on May 18; check timings
If you make RDs of Rs 5,000, Rs 10,000, Rs 15,000, and Rs 20,000 in post office, what will be your maturity amount?
Gold and Silver rate today (May 16, 2024): Yellow metal futures subdued; white metal hits record high breaches Rs 87,000 mark
03:37 PM IST