New Delhi:
Stock markets will be driven this week by the outcome of the US Federal Reserve’s interest rate decision, analysts say.
In addition, stock benchmarks will also continue to be guided by foreign fund movements and the trend in Brent crude, she added.
“Global markets are looking nervous after inflation figures in the US, which caused the dollar index to hover around 110,” said Santosh Meena, head of research at Swastika Investmart Ltd.
Now everyone is looking at the outcome of the upcoming meeting of the US Federal Open Market Committee (FOMC). The Bank of England will also announce its interest rate decision, Meena said.
He added that institutional flows will play a vital role as foreign investors have become sellers in the Indian stock market.
“In the absence of key domestic data and events, attendees will be watching the US Fed meeting closely. In addition, the trend of 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-share BSE Sensex had tanked 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 stock markets succumbed to the global trend of rising bond yields and the dollar index amid fears of interest rate hikes 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 this week will be the focus of attention. Globally, the Fed rate decision could cause turmoil in markets. than any other major market, it is expected to remain volatile.”
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