Markets Ahead: RBI’s Interest Rate Decision, Escalating Tensions In Middle East To Drive Investors

Further, analysts noted that the market will be looking out for earnings from IT giants like TCS, domestic economic data, and fluctuations in global oil benchmark Brent crude

The Reserve Bank of India (RBI) is scheduled to hold its next monetary policy committee (MPC) meet on October 7, 2024.

Source : ABPLIVE AI

Investors in the coming week will keep an eye on the interest rate decision from the RBI, the escalating conflict in the Middle East, and the trading activity of foreign investors. Further, analysts noted that the market will be looking out for earnings from IT giants like TCS, domestic economic data, and fluctuations in global oil benchmark Brent crude.

The experts said that the worsening tensions in the Middle East and outflows from foreign investors contributed to the downfall seen in the equity markets last week, reported PTI. The Reserve Bank of India (RBI) is scheduled to hold its next monetary policy committee (MPC) meet on October 7, 2024. The central bank will deliberate the fiscal policy and key interest rates in the upcoming meeting.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, further explained, “The second quarter earnings season is kicking off with TCS. Domestically, liquidity remains strong, with signs of sectoral rotation from overvalued segments to areas with more attractive valuations. Additionally, commodity prices, the US dollar index, and key US macroeconomic data will play a crucial role in determining market direction. Geopolitical developments will also continue to be a significant factor on the global front.”

Notably, the BSE Sensex slumped 3,883.4 points or 4.53 per cent last week, while the NSE Nifty declined 1,164.35 points or 4.44 per cent. 

Vinod Nair, Head of Research, Geojit Financial Services, stated, “The new milestones of both Nifty50 and Sensex of 26,000 and 85,000, respectively were short-lived as the headwinds from the Middle East and flow of FII funds to cheaper Asian peers impacted the investor sentiment. During the last week, these benchmark indices corrected by more than 4 per cent.”

 

The investors in the market lost their wealth by Rs 16.26 lakh crore in five days of heavy correction in equities. However, the market outlook will be driven by major macroeconomic data at the domestic and global level like the interest rate decision in India, UK GDP data, US FOMC (Federal Open Market Committee) meeting minutes, initial jobless claims, and industrial production.