Quick News Bit

US Fed interest rate decision key driver for markets movement this week: Analysts

0
Equity markets will be driven by the outcome of the US Federal Reserve’s interest rate decision this week, analysts said. Moreover, equity benchmarks will also continue to be guided by foreign fund movement and trend in Brent crude oil, they added.

“The global markets are looking nervous after the US inflation numbers, which have caused the dollar index to hover around 110,” said Santosh Meena, Head of Research,

.

Now everyone is eyeing the outcome of the upcoming US Federal Open Market Committee (FOMC) meeting. The Bank of England will also announce its interest rate decision, Meena said.

Smart Talk



He further added that institutional flows will play a critical role because foreign investors have turned sellers in the Indian equity market.

“In absence of any major domestic data and events, participants will be closely eyeing the US Fed meet. Besides, the trend of foreign flow would also remain on their radar,” Ajit Mishra, VP Research,

Broking Ltd, said.

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

The 30-share BSE Sensex had tanked 1,093.22 points or 1.82 per cent to settle at 58,840.79 on Friday, mirroring a sell-off in global markets.

Despite its strong decoupling scenario and encouraging macroeconomic data, domestic bourses succumbed to the global trend of rising bond yields and the dollar index as a result of rate hike fears in the global market, said Vinod Nair, Head of Research at

.

Apurva Sheth, Head of Market Perspectives, Samco Securities, said, “The FOMC meeting and press conference will be the centre of attention this week. Globally, Fed’s interest rate decision can trigger jitters in the markets. Although India has done significantly better than all the other major markets, it is expected to remain volatile.”

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment