The US Fed’s interest rate decision, inflation figures and FIIs are the key factors expected to boost the stock markets this week, according to analysts.
Global trends will also be monitored by investors for further clues, she added.
“The future trajectory of the Indian stock market will be influenced by a combination of global and domestic factors. Global trends, especially the performance of US markets and the Fed’s monetary policy decision, will play an important role. Moreover, domestic economic indicators such as inflation will determine market sentiment,” said Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd.
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The flow of foreign and domestic institutional investment will also be a key driver, he said.
Gour further said that the rupee exchange rate and crude oil prices will be crucial determinants of the direction of the market.
From the domestic macroeconomic data announcement, WPI inflation will be the focus on Monday.
“The main focus will be on the US Federal Reserve meeting, where a 25 basis point interest rate cut has already been taken into account. The Fed’s commentary on future interest rate policy will be very important,” said Ajit Mishra – SVP, Research, Religare Broking Ltd. .
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Last week, the BSE benchmark Sensex rose 623.07 points or 0.76 percent, and the Nifty rose 90.5 points or 0.36 percent.
Investors will look forward to the domestic WPI inflation to be released on Monday, an expert said.
