Markets to see profit booking ahead of key data: experts

Markets this week are likely to be volatile and may see bouts of profit booking as investors brace for a slew of events both on domestic and global front, including industrial production and inflation data.

Market experts said going ahead sentiment will be influenced by a combination of domestic and global factors such as inflation numbers, monsoon's progress and outcome of Greece elections.

This week, a series of domestic and global economic data are expected to keep the market choppy, experts added.

"Stock markets witnessed smart gains last week. Short term trend has definitely turned bullish, however profit booking at higher levels for Nifty at 5,090-5,120 cannot be ruled out," Shanu Goel Research Analyst Bonanza Portfolio said.

The BSE benchmark Sensex logged its best weekly gain in the current calendar year by rising 754 points on hopes of interest rate cut by the Reserve Bank of India in its mid-quarter policy review.

Industrial production (IIP) growth data for the month of April will be announced on June 12, while inflation numbers for May will come out on June 14. The RBI's policy review is scheduled for June 18.

Analysts are of opinion that inflation numbers and industrial output data will largely determine the extent of rate cut by the Reserve Bank in its policy review.

On the global front, the election outcome in Greece (June 17) will be the major event to watch out for, dealers said.

Investors will also closely watch how monsoon progresses in the country and movement in crude oil prices.

Crude prices have softened and the Brent crude is below the $100 a barrel mark.