Market likely to be volatile

The market is likely to be volatile next week as investors brace for major global events over the next few days. On the macro front, the government will announce data on industrial production (IIP) for the month of April 2012 on Tuesday, 12 June 2012. The government will announce inflation data for the month of May 2012 on Thursday, 14 June 2012. Data on first installment of the advance tax payment due on Friday, 15 June 2012, could provide cues on Q1 June 2012 corporate earnings. Investors will closely watch how monsoon progresses in the country. A good monsoon can help increase farm output, which can ease food inflation and boost agricultural income. On 5 June 2012, the monsoon arrived in Kerala four days after the usual arrival date as a cyclone on the west coast stalled the onset. Investors will also watch movement in crude oil prices. India imports two-thirds of its oil consumption, so a rebound in oil prices will hurt its fiscal and trade balance negatively. Crude for July delivery was down 2.97% to $82.30 a barrel in Asian trading on Friday, 8 June 2012. Over the next few days, the focus will be on the Reserve Bank of India's (RBI) mid-quarter monetary policy review scheduled on 18 June 2012. Investors are hoping that the RBI will cut interest rates to prop up slowing economy after data released by the government last week showed India's economy grew 5.3% in Q4 March 2012, its slowest pace of expansion in nearly a decade. On the global front, Greek voters return to the polls on 17 June 2012 after the splintered results of a May 6 parliamentary election left no party able to put together a government.