Inflation, Fed meet to take centre-stage for market this week

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.

"Key global events and the progress of monsoon will dominate market sentiment in the coming week. Investors will closely watch how the monsoon advances in the country," said Vijay Singhania, Founder-Director, Trade Smart Online.

Key macroeconomic data that are lined up are release of consumer price index (CPI) on Monday and inflation based on the wholesale price index (WPI) for May on Tuesday.

Apart from these data and the trend in global markets, investors will watch in the short end how the rupee stacks up against the dollar and the oil trajectory, Singhania added.

Markets may also react to IIP data which were released after market hours on Friday.

Industrial output contracted 0.8 per cent in April, the first decline in three months, due to a big fall in capital goods production and manufacturing activity.

"Market movement will depend on inflation data to be announced on June 13. WPI data on June 14 are also likely to bring volatility in the market. Along with this, investment activity of foreign investors, movement of the global market will be key," said Rohit Gadia, Founder & CEO, CapitalVia Global Research.

Market, according to experts, will await Fed commentary for immediate cues this week.

They would also keep an eye on developments in European markets ahead of the Brexit outcome -- Britain voting on its European Union membership.

"Major events of this week will be CPI and WPI numbers. Another major event of the week is Fed meeting," said Nirdosh Gaur, MD & CEO, Moneypalm, a brokerage firm.

Last week, the BSE Sensex snapped its two-week winning spell and tumbled 207.28 points to close at 26,635.75.