Share Market Ahead: RBI’s Interest Rate Decision To Influence Investors, Say Analysts

The macroeconomic data expected in the week includes the manufacturing and services PMI for India, and jobless data for the US

Experts pointed out that investors will first react to the GDP data which was released after market hours on Friday.

Source : ABPLIVE AI

The trading week will be driven by the RBI’s monetary policy committee (MPC) meeting and the decision on interest rates, analysts noted. The experts said that investors will keenly observe global trends, macroeconomic data announcements, and foreign fund flows in the coming week.

The auto sales data for the month will also be revealed in the week, reported PTI. Going forward, markets are expected to react to the GDP growth data revealed recently. The latest figures showed that the economy clocked a 5.4 per cent growth rate. 

Santosh Meena, Head of Research, Swastika Investmart Ltd, noted, “The upcoming RBI policy will be crucial, with both the interest rate decision and commentary being key focus areas. On the global front, geopolitical tensions, particularly the Russia-Ukraine situation, remains a concern. Important macroeconomic data such as manufacturing PMI from India, the US, and China, along with US jobs data and Fed Chair Jerome Powell’s speech, will also influence market sentiment.”

Amongst the macroeconomic data expected in the week, the manufacturing and services PMI for India, and jobless data for the US will be released. Palka Arora Chopra, Director, Master Capital Services Ltd, stated, “The Indian equity market ended the last week on a positive note after experiencing significant volatility. The outlook for the market will be guided by the major domestic and global economic data such as India's manufacturing PMI, services PMI, interest rate decision, US S&P global composite PMI, manufacturing PMI, services PMI, non-farm payrolls and initial jobless claims.”

Notably, the equity benchmarks rallied ahead in the last trading session on Friday. While the BSE Sensex climbed almost 700 points, the NSE Nifty gained more than 200 points.

Ajit Mishra, SVP, Research, Religare Broking Ltd, pointed out that investors will first react to the GDP data which was released after market hours on Friday. However, the primary focus will be on the RBI fiscal policy review.