US Fed Rate Decision, Domestic Inflation Data To Drive Markets This Week, Say Analysts

The investors last week experienced major volatility. In the week, the BSE Sensex surged 2,732.05 points or 3.69 per cent, while the NSE Nifty50 climbed 759.45 points or 3.37 per cent

Domestically, India will announce its industrial production figures and inflation data in the week.

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Global trends, domestic inflation figures, and the interest rate decision from the US Federal Reserve would drive markets in the week, analysts noted. The experts said that with the Lok Sabha elections result and the RBI interest rate decision announced, the markets would be impacted by the macroeconomic announcements in the week.

The investors last week experienced major volatility as markets oscillated between highs and lows before ending the week on a strong note. In the week, the BSE Sensex surged 2,732.05 points or 3.69 per cent, while the NSE Nifty50 climbed 759.45 points or 3.37 per cent. 

Commenting on the market movements, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said, “Now the Lok Sabha elections and the RBI policy decision are settled, attention now turns to global factors. Key areas to watch include the US Fed interest rate decision, the rupee's movement against the dollar, crude oil prices and commodity prices. Additionally, investments by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will remain under close observation.”

Other major announcements scheduled in the week include the US core and consumer price inflation data and the Federal Open Market Committee (FOMC) economic projections. In the latter half of the week, the Bank of Japan (BoJ) will also release its interest rate decision. 

Domestically, India will announce its industrial production figures and inflation data in the week.

Arvinder Singh Nanda, Senior VP, Master Capital Services Ltd, noted, “Trading activity of foreign investors would also be crucial in dictating terms in the market. The outlook for the market will be guided by major domestic and global economic data. India WPI inflation, China CPI inflation, UK GDP data, US CPI data, and the US Fed interest decision will guide the market this week.”

Giving an outlook ahead, Ajit Mishra, SVP - Research, Religare Broking Ltd, stated, “We believe volatility is likely to decrease now that major events are behind us, with focus shifting to domestic macroeconomic data such as IIP, CPI, and WPI for further signals. Additionally, global cues, particularly the upcoming US Fed meeting, will be closely watched by participants.”