NEW DELHI: Policy reviews by three major central banks, a historic summit meeting between the US and North Korea, vote on the Brexit Bill and disagreement over trade between the US and key allies at the just-concluded G-7 summit will be among the major cues driving the domestic stock market in the coming week.Last week, RBI raised the repo rate by 25 bps for the first time under the Modi regime in a pre-emptive move amid signs of a possible spike in inflation and improving growth numbers.However, contrary to the majority view, RBI kept its policy stance neutral, thus, giving equities the wings to fly.On Friday, the SP BSE Sensex closed 19.41 points down at 35,443, while NSEs Nifty50 ended 0.70 points lower at 10,767.
Out of the 50 Nifty constituents, 24 closed in the green and 26 in the red.
On a weekly basis, the 30-share pack of BSE gained 0.61 per cent while the 50-share Nifty added 0.66 per cent.Here's a look at the key events that Dalal Street may react to during the coming week -G-7 summit ends in disarrayThe two-day G-7 summit (June 8-June 9) held in Quebec City of Canada ended in disarray as US President Donald Trump remained isolated from its allies on trade tariffs.
He said he would not endorse the agreement on trade made by the G7 leaders and escalated his feud with Canadian Prime Minister Justin Trudeau by calling him 'dishonest and weak'.
He also slammed Trudeau for 'making false statements and for being meek and mild' during the summit as tensions continued to rise between the US and its allies.
His dramatic move has left the agreement between the leaders in disarray and could provoke an all-out trade war with his global counterparts, reported Mail Online.US-N Korea historic summitUS President Donald Trump is slated to meet North Korean leader Kim Jong Un for a historic summit on June 12 in Singapore.
Speaking at the G7 summit in Canada on Saturday, the US President said his meeting with Mr Kim in Singapore scheduled for Tuesday was a mission of peace, The Independent reported.
Although he conceded he was unsure if the talks would be successful, he said he would know within a minute if North Korea was serious about giving up its nuclear arsenal, the report added.Domestic macro numbers to set the moodThe government is expected to announce industrial production data (IIP) for April 2018 on Tuesday, June 12, 2018.
The index of industrial production (IIP) grew 4.4 per cent in March against a downward revised 7 per cent increase in the previous month.
Economists surveyed by Reuters had forecast IIP to grow at 5.9 per cent in March.This apart, inflation data based on wholesale price index (WPI) for May 2018 will be out on Thursday, June 14.
Annual wholesale price inflation in April rose to 3.18 per cent from a year earlier, higher than a 2.47 per cent rise in March.Nifty has bullish candle on tech chartThe Nifty50 index on Friday formed a Small Bullish Candle, suggesting waning of its recent bullish momentum.
On the weekly chart, the index formed a high-wave long-legged Doji pattern.
On the way up, 10,818 is a crucial resistance level.
In the near term, the 10,709 10,818 range will be key for the benchmark index, says Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.
If the index breaks below 10,698, then the bears will be back in action.
Overall, the chart structure will remain bearish as long as it doesnt close above 10,930.
"On the way down, we expect the index to drift lower towards 10,325 and 10,160 levels in the short term, once the pullback is complete," Ratnaparkhi adds.US Fed likely to raise rateThe rate-setting panel of the US Federal Reserve FOMC is slated to meet on Tuesday and Wednesday (June 12- June 13) to decide on monetary policy, with results due on Wednesday.
Going by the market pundits, the Fed looks all set to raise interest rates for a second time this year and the seventh since December 2015.
Strong jobs data last week and signs that inflation is nearing the 2 per cent sweet spot mean Fed chairman Jerome Powell and his Open Market Committee are in a good position to lift rates again despite the angst over Trumps global trade tariffs, Reuters reported.ECB, BoJ rate decisionsThe European Central Bank's policy decision is due on Thursday (June 14) where it is likely to signal that its 2.55 trillion euro bond purchase scheme will end this year.
If the bond buying ends, rate hikes cant be far behind.
Investors are starting to price in a possible first match be in the summer of 2019, with some even suggesting the banks -0.4 per cent deposit rate could be back up to zero by the end of next year, Reuters said in a report.On Friday (June 15), the Bank of Japan will declare its monetary policy decision.Brexit Bill goes to voteBritish lawmakers will next week (June 12 -June 13) discuss amendments proposed by the Upper House of Parliament to the government bill ending UK membership of the European Union.
Prime Minister Theresa May has to get the bill approved by both chambers of parliament well in advance of Britains exit on March 29, 2019, but the House of Lords, the unelected upper house, has demanded major changes to government proposals, said a Reuters report.Besides, crude price movement, progress of monsoon, rupee movement against the US dollar and inflows to equities from FPIs and DIIs are key factors that are likely to influence the market in the coming week.