Despite volatile global markets on account of Italy's political crisis and fresh fears of a global trade war, the Indian equity market jumped last week thanks to a drop in crude prices and recovery in the currency. For the week ended Friday, the S&P BSE Sensex rose 302.39 points or 0.87 per cent to settle at 35,227.26, while the Nifty 50 closed up 91.05 points or 0.86 per cent at 10,696.20. However, the broader markets underperformed, with a fall of 0.33 per cent and 1 per cent by the BSE Mid-Cap and BSE Small-Cap indices respectively.
In the coming week, the outcome of the monetary policy meeting (4-6 June 2018) and macroeconomic data will keep investors on the sidelines. The Reserve Bank of India maintained the status quo in its last monetary policy meeting on April 5, 2018, on the basis of an assessment of the current and evolving macroeconomic situation.
Markit Economics will unveil the result of a monthly survey on the performance of the services sector in May on Tuesday. The trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of the rupee against the dollar and crude oil price movement will also remain on investors' radars. Jayant Manglik, President, Religare Broking, expects a consolidation in the Nifty within the 10,550-10,850 zone in the near term.