According to analysts, the stock markets will be driven by the result of the US Federal Reserve’s interest rate decision this week.
In addition, equity benchmarks will continue to be guided by movements in overseas funds and the trend in Brent crude, they added.
“Global markets are looking jittery after the US inflation number which has caused the Dollar Index to fluctuate around 110,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Now everyone is eyeing the outcome of the upcoming US Federal Open Market Committee (FOMC) meeting. The Bank of England will also announce its rate decision, Meena said.
He added that institutional inflows will play a crucial role as foreign investors have become sellers in the Indian stock market.
“In the absence of important domestic data and events, participants will be closely watching the US Fed meeting. In addition, the trend in foreign flows would also remain on their radar,” said Ajit Mishra, VP Research, Religare Broking Ltd.
Last week, the Sensex lost 952.35 points, or 1.59 percent, while the Nifty lost 302.50 points, or 1.69 percent.
The 30-stock BSE Sensex was down 1,093.22 points, or 1.82 percent, to settle at 58,840.79 on Friday, reflecting a sell-off in global markets.
Despite the strong decoupling scenario and encouraging macroeconomic data, domestic bourses lagged behind the global trend of rising bond yields and the dollar index on the back of rate hike fears in the global market, said Vinod Nair, head of research at Geojit Financial Services.
Apurva Sheth, Head of Market Perspectives, Samco Securities said: “The FOMC meeting and press conference will be the focus of attention this week. The interest rate decision by the Fed can trigger nervousness on the markets worldwide. Although India has fared significantly better than everyone else the other major markets are expected to remain volatile.
(Only the headline and image of this report may have been edited by Business Standard contributors; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has endeavored to provide timely information and commentary on developments that are of interest to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback to improve what we offer has only strengthened our resolve and commitment to these ideals. Even during these trying times resulting from Covid-19, we remain committed to keeping you informed and informed with credible news, authoritative views and incisive commentary on timely and relevant issues.
However, we have a request.
As we fight the economic impact of the pandemic, we need your support even more so we can continue to bring you higher quality content. Our subscription model has had an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve our goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are dedicated to.
Support quality journalism and Subscribe to Business Standard.
digital editor
