HomeBusinessUS interest rate decision key driver for market volatility this week: Report

US interest rate decision key driver for market volatility this week: Report

US interest rate decision key driver for market volatility this week: Report

New Delhi:

Analysts said equity markets would be driven by the outcome of the US Federal Reserve’s interest rate decision this week.

Besides, equity benchmarks will also continue to be guided by foreign fund movement and trend in Brent crude oil, he said.

Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “Global markets are looking nervous after the US inflation numbers, due to which the dollar index has hovered around 110.”

All eyes are now on the outcome of the upcoming meeting of the US Federal Open Market Committee (FOMC). Meena said the Bank of England will also announce its interest rate decision.

He further said that institutional inflows will play an important role as foreign investors have become sellers in the Indian equity market.

Ajit Mishra, VP Research, Religare Broking Ltd. said, “In the absence of any key domestic data and events, participants will be eyeing the US Fed meeting. Moreover, foreign inflow trends will also remain on their radar.”

Last week, the Sensex lost 952.35 points, or 1.59 per cent, while the Nifty lost 302.50 points, or 1.69 per cent.

The 30-share BSE Sensex on Friday closed 1,093.22 points or 1.82 per cent lower at 58,840.79, reflecting a sell-off in global markets.

Vinod Nair, Head of Research, Geojit Financial Services, said despite its strong decoupling outlook and encouraging macroeconomic data, bond yields in the domestic market and rising trend of dollar index succumbed to fears of rate hike in the global market. .

Apoorva Sheth, Head of Market Perspectives, Samco Securities, said, “The FOMC meeting and press conference will be the focus of attention this week. Globally, the Fed’s interest rate decision could lead to panic in the markets. Though India compared all. It has outperformed in other major markets. It is expected to remain volatile.”

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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