Suspense Crime Sach Ka Dam
The direction of the local stock markets will be decided by the decision on the interest rate of the US central bank Federal Reserve 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.
Interest rates will decrease in America
Santosh Meena, Head of Research, at Swastika Investment 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 reduction 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.”
An important step for global markets
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.
These figures are also important.
Master Capital Services Ltd. Director Palka Arora Chopra said, “The market scenario 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. On the other hand, the National Stock Exchange’s Nifty rose 504.35 points or 2.02 percent.
What will be the strategy of FII?
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. Domestically, market participants will be eyeing wholesale inflation data and foreign fund flows.” Geojit Financial Services Chief Investment Strategist VK Vijaykumar said, “One of the major things in the week ended September 13 was that FIIs bought all days of the week.” He said 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 this month, which will reduce the yield on bonds in the US. This will increase investment in emerging markets. Second, the Indian market is quite aggressive and if FIIs do not invest here, it will be a bad strategy.
