NEW DELHI : RBI’s interest rate decisions, macroeconomic data and global trends would dictate stock market, showing some signs of correction after a fantastic run, this week, analysts said.
In addition, investors will also follow the movement in the dollar index and US bond yields this week, they said.
“The market will keep an eye on global data for further direction. On the domestic front, we do not have many negative clues, but it will be important to listen to the RBI Governor’s comments in the forthcoming policy scheduled for 8 October. what he says about inflation will be important, says Santosh Meena, head of research, Swastika Investmart Ltd.
On October 8, TCS will announce its second quarter results, Meena said.
The movement of the dollar index, US bond yields will also play an important role in the direction of global markets while the price of crude oil will have a major impact on Indian markets, he added.
“This week, the RBI is scheduled to announce its monetary policy. India’s PMI service will also be released this week,” said Vinod Nair, head of research at Geojit Financial Services.
During the past week, the BSE reference value for 30 shares fell by 1,282.89 points, or 2.13 percent. Market benchmarks met losses for the fourth straight session on Friday.
The markets would also track the movement of rupees, Brent oil and FPI investments.
The September correction in US markets highlights certain development risks – rising global inflation, oil and commodity prices, rising interest rates, Fed losses and recent developments on China’s front – which could create intermittent disturbances in investor sentiment.
“Indian markets are currently richly valued and therefore not immune to any of these headwinds. However, given the strong earnings outlook, any meaningful corrections in the stock markets can serve as an opportunity for long-term investors with a sufficiently long investment horizon,” said Unmesh Kulkarni – CEO Senior Advisor, Julius Baer India.
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