Investors are now looking at the Reserve Bank of India’s (RBI) policy review on Monday at 0530 GMT as the next key trigger,along with movements in global markets.
Although most analysts expect the central bank to keep rates on hold,an outside chance was seen after headline inflation slowed for a fourth straight month in May to 4.7 percent from a year earlier.
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U.S. Federal Reserve’s outlook on its bond buying programme and the pace of foreign institutional investment flows would also be key in determining the direction of the market next week.
Fears the U.S. Federal Reserve could begin reducing its bond buying later in the year have fuelled a selloff in global markets this week,which has bruised stocks,bonds,emerging market assets and the dollar alike.
FIIs have been net sellers of Indian shares for the previous three consecutive session,totalling 24.19 billion rupees ($416.78 million) so far,as per regulatory and exchange data.
KEY FACTORS/EVENTS TO WATCH Mon: RBI monetary policy decision due at 0530 GMT Wed: U.S. Federal Reserve’s Federal Open Market Committee (FOMC) announces decision on interest rates.