India's inflation data , the Covid-19 vaccination drive and resumption of economic activities after prolonged lockdown and curbs would guide the trend of domestic equity markets this week, say analysts. Further, the US central bank's monetary policy meeting for its stance on continuing stimulus measures is another factor that market participants are observing. Nirali Shah, the head of equity research at Samco Securities said the US FOMC meeting would keep markets volatile. Logically, this would lead to a tightening of monetary policy or a withdrawal of accommodation at the very least by the Reserve Bank of India (RBI). Economists at QuantEco believe that monetary policy will look through the rise in inflation this time.

Source: Mint June 13, 2021 06:00 UTC