Market Outlook this week: The direction of the local stock markets will be decided by the decision of the US central bank Federal Reserve on the interest rate this week. Apart from this, many macroeconomic data on the global front and the activities of foreign investors will also give direction to the market. Analysts have expressed this opinion. The past week was quite remarkable for the Indian stock market. On Thursday, both Nifty and Sensex reached their all-time high. On the same day, the Sensex of 30 shares of BSE crossed the 83,000 mark for the first time.
What do experts say
Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “This week is going to be the most important event of the year. The Federal Open Market Committee (FOMC) meeting will be held on September 18. It is almost certain that this will start the interest rate cut cycle. The consensus in the US is to cut the interest rate by 0.25 percent. However, some market participants are expecting a half percent cut in the interest rate.” Meena said, “Such a move will be an important positive indicator for the global markets, especially for emerging markets like India. This will weaken the dollar and reduce bond yields in the US, which will increase the flow of foreign institutional investors (FIIs) in the Indian stock markets.” He said that apart from this, Japan’s inflation data is to come on Friday, after which the monetary policy of the Bank of Japan (BOJ) will be announced. He said that the flow of foreign institutional investors, geopolitical developments and crude oil prices will also be important for the market.
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Master Capital Services Ltd. Director Palka Arora Chopra said, “The market outlook will be determined by key domestic and global economic data… such as India’s wholesale inflation, US industrial production, US central bank’s interest rate decision and US unemployment claims data.” Last week, the 30-share BSE Sensex gained 1,707.01 points or 2.10 percent. The National Stock Exchange’s Nifty rose 504.35 points or 2.02 percent.
Religare Broking Senior Vice President-Research Ajit Mishra said, “Looking ahead, this week is very important. The US central bank will announce its interest rate decision on September 18. At the domestic level, market participants will keep an eye on wholesale inflation data and flow of foreign funds.”
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VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “One of the key things in the week ended September 13 was that FIIs bought on all days of the week.” He said that there are two reasons why FIIs have changed their strategy. One, now there is a consensus that the US central bank will start cutting rates from this month, which will reduce the yield on bonds in America. This will increase investment in emerging markets. Second, the Indian market is very aggressive and if FIIs do not invest here, it will be a bad strategy.
