Markets This Week To Closely Observe US Fed’s Interest Rate Decision: Analysts

Further, global market trends and foreign investors’ trading activity will also decide how the equity markets react in the week.

On the global end, the Bank of England and Bank of Japan will also release their interest rate decisions, which is expected to impact the markets.

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Analysts stated that the markets in the coming week will be majorly impacted by the US Federal Reserve’s decision on interest rates. Further, global market trends and foreign investors’ trading activity will also decide how the equity markets react in the week.

On the global end, the Bank of England and Bank of Japan will also release their interest rate decisions, which will impact the markets, noted market experts. Notably, the trading week will be shortened on account of a holiday for Ganesh Chaturthi on Tuesday. 

The week will primarily focus on monetary policy as Fed policymakers come together for the latest Federal Open Market Committee (FOMC) meeting and reveal their interest rate decision on Wednesday, expressed Swastika Investmart Ltd.’s senior technical analysts, Pravesh Gour. He also stated that rupee movements against the dollar, US bond yields, and crude prices will be a key factor to look out for. 

Notably, domestic equity markets moved in an upward trajectory last week. The BSE benchmark gained 1,239.72 points or 1.86 per cent, and the Nifty jumped 372.4 points or 1.87 per cent. On Friday itself, the markets rallied for the 11th consecutive day, with the BSE Sensex moving up by 319.63 points or 0.47 per cent to close at a record 67,838.63. Further, the benchmark index rallied 408.23 points in the day to hit a new all-time intra-day high of 67,927.23. The Nifty gained 89.25 points or about 0.44 per cent and closed at an all-time high of 20,192.35. The index hit a lifetime intra-day high of 20,222.45 during the day. 

Geojit Financial Services’ head of research, Vinod Nair, said, “Investors are now focused on upcoming data releases and central bank meetings scheduled for this week, including decisions from the US Fed Reserve, BoE (Bank of England) and BoJ (Bank of Japan),” as quoted by PTI. 

Further, Arvinder Singh Nanda, senior vice president at Master Capital Services Ltd. also shared his expertise and said, “Investors would also focus on the movement of the global oil benchmark Brent crude and the rupee. In the coming days market may react to some major macroeconomic data such as US S&P Global manufacturing and services PMI, initial jobless claims, crude oil inventories, FOMC statement, Fed interest rate decision, UK inflation, Eurozone inflation.”