Updated on 2 July 2018
Trade Tariffs - This is the most critical factor that market is watching. Due to trade war between USA and China global markets saw a huge sell off last week. Any further trade war would take markets at downside. Import tariffs announced by the US President Donald Trump on Chinese products will come into effect on July 6. Earlier in June, Trump laid out a list of more than 800 strategically important imports from China that would be subject to a 25 per cent tariff starting on July 6, including cars. In response to it, China’s Commerce Ministry had said it would respond with tariffs “of the same scale and strength” and that any previous trade deals with Trump were “invalid.” Indian Rupee price: If you see the history of Indian stock market then it is very clear that whenever Rupee falls FII (foreign investors) sold the Indian stocks. Rupee has already touched the all time high of aorund Rs 70 per US dollar in last week and nay further rise in rupee would take negative impact on Indian stock market but this is positive for IT stocks. Crude prices: As india imports around 80% of its Oil, any increase in crude prices would also see negative impact on our stock market. Crude oil prices posted biggest weekly rise in more than two months on shrinking stockpiles and supply disruptions from Canada to Libya. Futures advanced 8.1 per cent last week in New York, above London-traded Brent crude’s gain of 5.1 per cent. Bloomberg reported. The world’s two most important oil benchmarks - Brent and WTI are diverging as Saudi Arabia’s pledge to lift output weighs on the European market, the report said. Macro data: India's manufacturing sector data for June is slated to release on Monday. The Nikkei India Manufacturing Purchasing Managers Index (PMI) fell from 51.6 in April to 51.2 in May. Services sector data for June will be unveiled on Wednesday. Services activity witnessed a slowdown in May as the Nikkei India Services Business Activity Index fell to 49.6 from 51.4 in April.
Stocks to watch Auto companies continued to register robust sales in May, driven by rural demand and government's infra push. Maruti Suzuki India, a leader in passenger vehicles, sold a total of 172,512 units in May, an increase of 26 per cent while Tata Motors registered a strong growth of 58 per cent YoY at 54,295 units, against 34,461 units. Auto stocks: New stock listing: Shares of RITES and Fine Organic Industries will list on the bourses on Monday. Initial public offerings of both the companies, which ran from June 20 to June 22, saw huge investor demand. While Railways consultancy firm RITES' public offer was subscribed a mega 67 times, Fine Organics issue was subscribed nearly 9 times.