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How the stock market will fare this week depends on what the Central Bank of America will do. The results of the Federal Reserve meeting will come on December 10. If there is a cut in interest rates like in India, it will be a good sign for the domestic market. If this does not happen then the entire market may turn red.
New Delhi. The stock market this week is completely dependent on the decision of the US Federal Reserve. Domestic investors are also assuming that the Fed’s announcement on interest rates will decide the direction of the market. Along with this, India’s inflation figures, attitude of foreign investors and rupee will also influence the trading sentiment to a great extent this week.
Last week, domestic markets remained calm and Sensex and Nifty closed almost unchanged. Traders say that big events seem to be awaited and investors are not in any aggressive position at present.
Fed’s decision will become the biggest trigger
According to Ajit Mishra, Senior Vice President, Religare Broking Limited, the market will also keep an eye on India’s CPI data on December 12. But at the global level the real focus is on the US Federal Reserve. He says that the Fed’s policy directly affects the perception of risk taking in emerging markets. Therefore, on any signal, there can be a rise or slight fall in the Indian market. It is believed that if the Federal Reserve cuts interest rates, the market may rise by 1-2 percent next week. If this does not happen then a sharp decline is considered almost certain.
Keep an eye on FOMC meeting also
Pravesh Gour, research analyst at Swastika Investmart, said that investors are now keeping an eye on the FOMC i.e. Federal Open Market Committee meeting to be held on December 9 and 10. Indications regarding interest rates will be given from this meeting. Along with this, American employment figures will also affect the environment. These figures will be released on December 9 and will reveal the condition of the American labor market.
Rupee’s weakness is also raising concerns
Last week the rupee showed weakness and it reached below 90 level against the dollar. Analysts say that the movement of rupee can also affect the direction of the market this week because it has a direct impact on the sentiment of foreign investors.
Market situation last week
BSE Sensex closed 5.7 points higher last week while NSE Nifty slipped 16.5 points. Although no major movement was seen, but this week’s big events can boost the market.
