RBI's monetary policy review, key macroeconomic data and progress of monsoon rains would influence market sentiment this week, say experts. "Major part of the earning season is over. Stocks have already reacted sharply to the numbers and have been now thoroughly discounted. The biggest factor that the market will look forward is how efficiently the GST will be implemented," SAMCO Securities CEO Jimeet Modi said.
"The extent of monsoon will also have an impact on the market. Outcome of RBI monetary policy committee meeting this week would guide the direction of the market in the near term," he added.
Sector-specific movement can be seen following the GST Council meeting on Saturday. The Council cleared the pending rules, including transition provisions and returns, with all the states agreeing to July 1 rollout of the Goods and Services Tax.
"Implementation of GST can impact the flow of business in the near-term which can bring volatility in markets. However given the long term benefits of GST, we are witnessing strong buying interest which is expected to continue unless there is any change in global factors.
"For the week ahead, markets will closely watch the RBI and ECB policy meet," Vinod Nair, Head of Research, Geojit Financial Services said. The Reserve Bank is scheduled to hold its monetary policy meet on June 6 and 7.
"This week is likely to remain eventful as important macroeconomic data like services PMI is due on Monday. Apart from that, most significant event, that is RBI monetary policy is due on Wednesday," Abnish Kumar Sudhanshu, Director and Research Head, Amrapali Aadya Trading and Investments said.
"RBI's stance on interest rates, progress of monsoon and GST will drive market sentiments this week. With the benchmark indices trading at record high, further consolidation cannot be ruled out," Vijay Singhania, Founder-Director, Trade Smart Online said.
“Participants are pining hopes on monsoon after the recent favorable updates and we do not expect this to fade away soon. Also, rotational buying on sectoral front is added positive. Put together, markets are likely to extend the prevailing momentum and any intermediate dip should be considered as buying opportunity. Now, Nifty has immediate support at 9500,” said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.