Sensex seen range-bound; budget awaited

The BSE Sensex and Nifty are likely to trade range-bound as investors have turned cautious and will wait for clarity in the maiden budget of the newly-elected Modi government, due on July 10.

The market will take a close look at the US non-farm payroll data, due on July 3, which will direct the short-term trend in global equities.

Auto stocks will be in focus as companies will report monthly sales numbers in the coming week.

Reliance Industries Ltd will be watched as the Securities Appellate Tribunal will deliver its verdict on an insider trading case against the company.

Oil and gas stocks will be in focus, given the continuing conflict in Iraq, and investors will also eye news flow on reforms in the sector.

 

KEY EVENTS/FACTORS TO WATCH

 

Monday : Infrastructure output data for May, Federal deficit data for the first two months of this fiscal, external debt data

 

Tuesday : French Foreign Minister Laurent Fabius visits India, Manufacturing PMI

 

Thursday : Services PMI; European central bank's rate decision