The performance of the Indian economy improved in May, with eight of the 16 high-frequency indicators tracked by Mint showing better performance. The improvement was mainly due to the improvement in domestic passenger vehicle and tractor sales, which moved out of the red into the amber zone. However, indicators such as domestic air passenger growth, import cover, broadband subscriber base, and trade deficit remained in the red. The Mint tracker provides a monthly comprehensive report on the state of the economy based on trends in 16 high-frequency indicators. The tracker has been running since October 2018.
Analysts expect that domestic macroeconomic data announcements, global trends, and trading activity of foreign investors will guide market sentiments this week. Markets may face volatile trends amid elevated valuations. Investors will closely monitor the global oil benchmark Brent crude and the movement of the rupee against the dollar. The upcoming Union Budget in July will be the next focal point. Market sentiment will be gauged by monitoring the activity of Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII), as well as crude oil prices. Key economic data from the US, such as the job openings report and ISM Services PMI, will also be released. The movement of the dollar index and US bond yields will be crucial factors to watch. Last week, the BSE benchmark, Sensex, recorded its best monthly gain in June by climbing 7.14% and breached the historic 79,000 mark, while the Nifty hit the 24,000 level for the first time. Major domestic and global economic data, including HSBC India Manufacturing PMI, HSBC India Services PMI, S&P Global Manufacturing PMI, Fed speeches, and initial jobless claims, will guide the market outlook. Auto sales data and the progress of the monsoon will also be in focus. Global cues indicate a supportive outlook. [e61b3a17] [55cc0bee]