Indian equities this week will be guided by factors like geopolitical developments, US-China trade negotiations and Fed interest rate decision amid lack of major domestic triggers, say analysts.
Investors will also keep a track on the domestic trade situation following reports that India has decided to impose retaliatory tariffs on 29 US products with effect from June 16.
The government had on June 21, 2018 decided to impose these duties in retaliation to the US decision of significantly hiking customs duties on certain steel and aluminium products. India had extended the deadline for imposition of duties multiple times in the hope that some solution would emerge.
"Markets are currently dancing to the global tunes and we do not see this changing any time soon, in absence of any major local trigger," said Jayant Manglik, President - Retail Distribution, Religare Broking.
Vinod Nair, Head of Research, Geojit Financial Services, said: "Ripple effect from a weak global market while premium valuation and slow economy is hurting the market. Continuous exchange of words between US and Tehran regarding the oil tanker attack, progress of US-China trade war, Fed policy outcome on 19th June and progress of monsoon will be closely watched by the investors."