The coming week is expected to be pivotal for the Indian stock markets as key economic triggers line up, including domestic inflation data, updates on US tariffs, and global economic indicators.  The government will release India’s inflation data on June 12, a crucial factor that significantly influences overall economic sentiment and market behaviour. In April, retail inflation stood at 3.16 per cent. Any deviation from expectations in the upcoming data could sway market trends.

On the global front, any developments regarding US trade tariffs will also be closely watched, as they have the potential to impact global trade flows and investor sentiment. Last week, the Indian stock markets saw a strong rebound after two weeks of declines. The Nifty gained 252 points or 1.02 per cent to close at 25,003.05, while the Sensex rose 737.98 points or 0.91 per cent to end at 82,188.99.

The rally was led by banking stocks, with the Nifty Bank index climbing over 1.5 per cent to close at 56,578.40, also touching a new all-time high of 56,695 during the week. Among sectoral indices, the Nifty Realty index surged 9.5 per cent between June 2 and 6, while the media and IT sectors ended in the red.

On the institutional side, foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 3,565 crore during the week. In contrast, domestic institutional investors (DIIs) infused Rs 25,513 crore into the cash segment, reflecting strong domestic confidence.

Puneet Singhania, Director at Master Trust Group, noted that the Nifty has managed to close above the 25,000 level after two weeks of weakness and is now trading above both its 21-day and 55-day moving averages. According to him, the index has support near 24,700, while on the upside, 25,250 and 25,600 are key resistance levels to watch.