Dalal Street Week Ahead | Traders tread cautiously, fingers crossed over inflation number
The Dalal Street is expected to remain volatile this week as traders tread cautiously, with their fingers crossed over the upcoming inflation data. Inflation figures for the month of April are due to be released on Tuesday and the market will be closely monitoring the figure to gauge the direction of the economy.
The Indian economy has been struggling with high inflation in the past few months, which has been a major concern for the central bank. The Reserve Bank of India (RBI) has been taking measures to contain inflation, such as increasing interest rates and introducing other measures to reduce liquidity.
However, the market is expecting the inflation figures to come in lower than expected, which could provide some respite to the economy. If the figure comes in lower than expected, it could provide the RBI with more room to cut interest rates in order to stimulate the economy.
Apart from the inflation data, the market will also be keeping an eye on the progress of the monsoon. The monsoon has been delayed this year, which could have an impact on the agricultural sector. The government has already announced a slew of measures to provide relief to the sector, but the market will be keenly watching the progress of the monsoon.
In addition to this, the market will also be tracking the progress of the Goods and Services Tax (GST) bill. The bill is expected to be passed in the Parliament soon, which could provide a major boost to the economy.
Overall, the market is expected to remain volatile this week as traders wait with bated breath for the inflation data. If the figure comes in lower than expected, it could provide some respite to the economy and provide the RBI with more room to cut interest rates. However, traders will also be keeping an eye on the progress of the monsoon and the GST bill.