Mumbai, April 11: The Indian financial market is set to receive major inputs from crucial macroeconomic data points such as the Index of Industrial Production (IIP) and the crucial inflation-determining Consumer Price Index (CPI), that are set to be announced tomorrow by the Central Statistics Office (CSO).
Apart from the CPI and the IIP, the Wholesale Price Index (WPI) is also set to be released by the Ministry of Commerce and Industry. These data points will be further bolstered by the fourth quarter (Q4) results of major IT firms. Together, this information will serve as a major determinant for the Indian financial market’s sentiments.
The market has today showed a slight recovery from a constant downward streak for the past three days. Further, the Reserve Bank of India’s bi-monthly policy review, which was announced in the past week, reflected measures that were brought in to reign in the rising inflationary tendencies. Apart from cutting down the Marginal Standing Facility, the Reserve Bank of India also raised the reverse repurchase rate extended to banks, by 25 basic points.
“Investors will closely follow the domestic economic data like CPI and IIP, while price movement of the Indian rupee against USD will be the crucial factor for market sentiments next week,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls in a recent article.
Apart from these intra-national factors, geopolitical developments across the world will also have an impact on global market sentiments which will reflect accordingly in the Indian market. Among these developments, the US’ strike on a Syrian base and the potential for an enlarged war, will have a particularly important role.