G7 summit to US GDP data: Top 5 factors that could impact the stock market next week

The Indian stock market closed higher for the day on Friday and for the week, helped by positive global signals, but on lower than normal volumes, suggesting weaker participation from REITs which have been relentless sellers in the markets. indians. Market experts say US GDP contracted in the first quarter and is expected to slow to near zero by the second half of the year, indicating signs of economic distress. Recent data releases from Japan, Britain, the Eurozone and the United States showed that factory activity remained subdued in June across all regions.

Giving his view on the market’s development over the past week, Rahul Shah, co-head of research at Equitymaster, said: “The decline in the Indian stock market this week looks more like a relief rally than a The global macros continue to remain challenging and could continue to hold back Indian equities as well. better for Indian stocks. It’s a good time to start accumulating fundamentally strong stocks as long as you’re not paying too much for quality and stability.”

Here we list the top 5 triggers that could dictate the stock market next week:

1]G7 Summit 2022: “The 2022 G7 summit is scheduled for June 26-28, 2022 and any further escalation in geopolitical tensions regarding the Russian-Ukrainian and Sino-Vietnamese war could lead to a sharp correction in global equity markets. an eye on the G7 summit next week,” said Anuj Gupta, vice president of research at IIFL Securities.

2]Dollar index: “Next week, many triggers will dictate the direction of gold prices. The first major variable will be the movement of the dollar index as it would decide the FII activity in the Indian markets. The dollar index rebounded strongly from some easing last week and any further rise in the dollar index could lead to heavy selling by FIIs,” said Anuj Gupta of IIFL Securities.

3]OPEC+ meeting: “Any significant and unexpected increase in oil production will help dampen oil prices and inflation. Nonetheless, OPEC and its members are sticking to their original plan to add 432,000 barrels a day to the market, and no announcement no surprise was made by OPEC despite oil prices surging to triple digits,” said Sreeram Ramdas, Vice President of Green Portfolio – SEBI, a registered portfolio management service provider.

4]First quarter US GDP data: This is an important trigger for market watchers and investors to keep an eye out for next week. If the numbers are disappointing, speculation about a slowing US economy will build, leading to strong selling in global markets, including Dalal Street.

5]UK retail sales: “With UK inflation at a 40-year high hitting 9.1%, consumer spending and budgeting have taken their toll. Considering that 25% of the FTSE 100 – the UK stock market index – consists of consumer staples and consumer discretionary, this retail print will be critical,” said Sreeram Ramdas of Green Portfolio.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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