Dalal Street Week Ahead: 10 Key Events to Watch

Dalal Street Week Ahead: 10 Key Events to Watch

Keywords: Dalal Street, CPI, IIP, FOMC, Global Cues

The Indian equity markets are poised for an action-packed week, with a slew of crucial factors likely to influence investor sentiment. Here are 10 key events that traders will be keeping a close eye on:

1. Government Formation: The formation of the new government after the landslide victory of the Bharatiya Janata Party (BJP) in the Lok Sabha elections is expected to set the tone for the week.
2. Consumer Price Index (CPI): The CPI inflation data for April will be released on Thursday, May 16th. A moderation in inflation will boost sentiment, while a rise could dampen spirits.
3. Index of Industrial Production (IIP): The IIP data for March will be out on Monday, May 13th. A positive growth rate will indicate a recovery in the industrial sector.
4. Federal Open Market Committee (FOMC) Meeting: The US Federal Reserve will announce its decision on interest rates on Wednesday, May 15th. A dovish stance from the Fed could support global markets.
5. Global Cues: US-China trade talks, Brexit developments, and geopolitical tensions will continue to impact investor sentiment in India.
6. Earnings Season: Several companies, including TCS, Infosys, and Axis Bank, will announce their March quarter earnings during the week. Strong earnings could boost their respective stock prices.
7. Corporate Concall: Company managements will hold conference calls to discuss their financial performance and business outlook. Investors will scrutinize these calls for insights into future prospects.
8. Technical Indicators: The Nifty50 index is trading near a key resistance level of 11,900. A breakout above this level could lead to further gains, while a reversal could trigger a correction.
9. F&O Expiry: The May series of the Futures and Options (F&O) contracts will expire on Thursday, May 16th. This could lead to increased volatility in the market.
10. Margin Requirements: The Securities and Exchange Board of India (SEBI) has announced increased margin requirements for certain F&O contracts. This measure could impact intraday trading and speculation.

Traders and investors are advised to remain cautious and monitor these events closely. Market sentiment is likely to be volatile, and careful decision-making will be crucial for success.