The key indices of the Indian stock markets are going to be influenced by a number of triggers this week (ending 3 August) including the Reserve Bank of India's upcoming monetary policy review and release of key macroeconomic data.
The important events and data release to watch for this week are:
- RBI Monetary Policy Review Meet: Taking place between the 31 July and 1 August, the results of the meet will dominate the movement in the market. In its last monetary policy review held in the month of June, the RBI increased the benchmark short-term lending rate(repo rate) by 0.25 percent to 6.25 percent on inflationary concerns. Experts suggest that the minimum support price (MSP) announcement between June and now will also be one of the main factors in the RBI's decision.
- Quarterly results: Financial results for the first quarter of the financial year 2018-19 of heavyweights like Axis Bank (30 July) and Tech Mahindra (31 July) are also going to impact investor sentiments. Other blue-chip listings set to report their quarterly results this week are Tata Motors, Idea Cellular, ONGC, Reliance Infra and Vedanta.
- PMI data: PMI is an indicator of business activity in the manufacturing and services sectors. It measures changes in the perception of some key business variables of when compared to the previous month, based on the survey conducted by expert researches. The result is influential to trading sentiments and is closely watched around the world. The Nikkei manufacturing PMI for the month of July will be out on 1 August and that of the service sector will be released on 3 August.
- Automobile monthly sales: Monthly sales data from the auto sector is also set to be released this week. It can affect specific stocks or the sector collectively.
- Other factors: Eight core industries' (ECI) output, fiscal deficit numbers of India, crude oil price movements and the valuation of the Indian rupee against the US dollar.