RBI policy, Q1 earnings, macroeconomic data to drive markets

RBI's third bi-monthly monetary policy meeting is scheduled on Tuesday and IIP will be announced on Friday

RBI policy meeting, the last leg of quarterly earnings and macroeconomic data would set the stock market trend in an eventful week ahead, say experts.

"RBI policy and first quarter earnings will set market sentiment this week. The next major event this week is the Reserve Bank of India's (RBI) third bi-monthly monetary policy meeting scheduled on Tuesday," said Vijay Singhania, Founder-Director, Trade Smart Online.

Apart from RBI policy review, the last batch of June 2016 corporate results, progress of monsoon rains and macro economic data will dictate market trend in the near term, he added.

The domestic earnings season almost comes to an end this week. Among key earnings slated for the week ahead are from Hero MotoCorp, Idea Cellular, Adani Ports and Special Economic Zone, Lupin, Mahindra & Mahindra and Hindalco Industries.

Among macro economic data, the government will announce data on industrial production for June 2016 on Friday.

On the same day, inflation based on consumer price index (CPI) for July 2016 is scheduled to be released, Singhania said.

"The most important event for the coming week is RBI's monetary policy announcement," said Pankaj Sharma, Head of Equities, Equirus Securities.

Over the last week, both indices - the Sensex and the Nifty - rose 26.49 points and 44.65 points, respectively.

"Market movement this week will depend on quarterly result announcement. Along with this, activities of foreign portfolio investors is going to be key. Investors will keep a watch on RBI interest rate decision scheduled on Tuesday along with data like industrial production and inflation rate scheduled on Friday," said Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.