Interest rate decisions by the Federal Reserve in the US, domestic inflation data and global trends will determine stock market movements this week. Analysts expressed this opinion. Last week, market volatility was witnessed amid general election results and RBI's policy review. The market closed with a strong rally, but was preceded by a sharp decline.
In the previous week, the BSE Sensex gained 2,732.05 points or 3.69 percent, while the Nifty gained 759.45 points or 3.37 percent. On Friday, the 30-share BSE Sensex rose 1,720.8 points or 2.29 percent to hit a new record high of 76,795.31 in intra-day trade. The Sensex rose 1,618.85 points or 2.16 percent to close at a record high of 76,693.36.
Pravesh Gaur, senior technical analyst at Swastik Investsmart Limited, said that the results of the Lok Sabha elections and RBI's policy review are in. Investors are now focusing on global factors.
Technical analyst Pravesh Gaur further said that the US Federal Reserve's decision on interest rates this week, movement of the rupee against the dollar, crude oil and commodity prices will determine market movements.
He said that apart from this, investments by Foreign Portfolio Investors (FPIs) and Domestic Institutional Investors (DIIs) will also be closely monitored.
Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said the market outlook will be determined by key domestic and global economic data.
He said the future direction of the market will be determined by WPI inflation in India, CPI inflation in China, GDP data in Britain, CPI data in the US and interest rate decision by the US Federal Reserve.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said market volatility is likely to ease in the coming days.
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