An improvement in consumer confidence has come as a welcome relief for the US markets which have been struggling off late. In India too, the indices may continue to remain lackluster amid thin volumes. A clear direction might emerge once the Nifty manages a decisive break out from the current range.
The opening is set to be slightly positive with market participants focusing more on the IIP for April. Reports say the Government will unveil a new IIP with change in base year and composition. The draft National Manufacturing Policy has received a green light from the PM.
What is moving right now is crude oil and it’s not good news for India. The US markets also managed to break a six-day losing streak, spurred by encouraging data. European stocks also rose after falling for six straight days.
The Bank of England and the ECB left key rates steady. However, the ECB is likely to hike rates in July. South Korea has increased policy rate by 25 bps.
Talking of rates, the RBI could boost rates by 25 bps on June 16. Inflation continues to be sticky with food inflation back above 9%. Inflation data for May will be out on June 14.
