New Delhi: The Reserve Bank of India's (RBI) monetary policy review on Tuesday will dictate the trend on the bourses this week, experts said.
Besides, automobile stocks will be in focus as companies from this sector will unveil their monthly sales data for May.
With Q4 (March) quarter earnings season over, trend in investment by foreign institutional investors, global cues and movement of rupee against the dollar will dictate trend at the domestic bourses.
“Now participants' reaction on GDP number would set the tone for the markets on Monday. We believe any decline or fall in the index would attract fresh participants (both traders & investors) in the markets as there's a feeling of being left-out is lingering in the markets,” said Jayant Manglik, president-retail distribution, Religare Securities.
India's economic growth remained below the 5 per cent mark for the second year in a row at 4.7 per cent in 2013-14.
The economic growth remained subdued at 4.6 per cent in the fourth quarter of 2013-14 and during the entire fiscal, mainly due to a decline in manufacturing and mining output.
On the RBI policy, Shrikant Chouhan, head-technical research, Kotak Securities, said: “We are expecting surprises from the credit policy on the positive side even though the consensus is close to unchanged.”
Marketmen said that the next major trigger for the market is the Union Budget for 2014-15 which is expected in July.
On a weekly basis, the sensex fell 476 points. This was its biggest loss since the week ending January 31, 2014 when it had weakened by 619.71 points.
For the month, the sensex gained a whopping 1,800 points-logging its best monthly performance in recent times.
