Markets Ahead: US Fed’s Rate Decision, Inflation Data To Influence Trading, Say Analysts

The key benchmark indices rallied ahead last week. The BSE Sensex climbed 623.07 points or 0.76 per cent, while the NSE Nifty50 gained 90.5 points or 0.36 per cent

The experts said that the sentiment among investors would be driven by global trends as well in the coming trading session.

Source : ABPLIVE AI

Inflation figures, the decision regarding key rates from the US Federal Reserve, and the sentiment of the foreign institutional investors (FIIs) would impact trading in the coming week, analysts noted. The experts said that the sentiment among investors would be driven by global trends as well in the coming trading session.

Among the macroeconomic indicators, the WPI inflation data is scheduled to be released on Monday, reported PTI. Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, noted, “The Indian stock market's future trajectory will be influenced by a blend of global and domestic factors. Global trends, particularly the performance of US markets and the Fed's monetary policy decision, will play a significant role. Additionally, domestic economic indicators like inflation, will shape the market sentiment.”

Gour stated that the flow of foreign and domestic institutional investments will also influence the sentiments among traders. The expert said that market will also be driven by the fluctuations in crude oil prices and currency movements. 

Ajit Mishra, SVP, Research, Religare Broking Ltd, pointed out, “The key focus will be on the US Federal Reserve meeting, where a 25 basis point rate cut is already factored in. The Fed's commentary on future rate policy will hold significant importance.”

Notably, the key benchmark indices rallied ahead last week. The BSE Sensex climbed 623.07 points or 0.76 per cent, while the NSE Nifty50 gained 90.5 points or 0.36 per cent.

Further, the foreign portfolio investors (FPIs) continued to display a positive outlook towards Indian equities in December so far. The investors infused Rs 22,766 crore asof December 13, 2024. This recovery in equities followed massive outflows seen in October and November worth Rs 94,017 crore and Rs 21,612 crore respectively.