New Delhi: The US central bank’s decision on interest rates, trends in global markets and activities of foreign investors will decide the direction of the stock markets this week. Analysts have expressed this opinion. Stock markets will remain closed on Tuesday on the occasion of ‘Ganesh Chaturthi’. On the global front, the decision on interest rates by the Bank of England and the Bank of Japan will also provide direction to the market. “This week will be one of monetary policy,” said Pravesh Gaur, senior technical analyst at Swastika Investmart Ltd.
Federal Reserve policymakers have called a meeting of the Federal Open Market Committee (FOMC) and the decision on interest rates will be announced on Wednesday, September 20. “Movement of rupee against dollar, bond yields in US and crude oil prices will also be important for the market direction,” Gaur said. Last week, the 30-share BSE Sensex gained 1,239.72 points or 1.86 percent.
National Stock Exchange’s Nifty rose 372.4 points or 1.87 per cent. The Sensex was in gains for the 11th consecutive trading session on Friday and closed at a record high of 67,838.63 with a jump of 319.63 points or 0.47 per cent. It rose 408.23 points or 0.60 percent to its new all-time high of 67,927.23 in intraday trading.
On Friday, Nifty closed at its record level of 20,192.35, up 89.25 points or 0.44 percent. It rose 119.35 points or 0.59 percent to its all-time high of 20,222.45 during intraday trading. Vinod Nair, head of research at Geojit Financial Services, said, “Investors will now keep an eye on the upcoming data and the central bank meetings to be held this week.
Apart from the Federal Reserve, decisions on interest rates will be announced by the Bank of England and the Bank of Japan during the week. Apart from this, fluctuations in global crude oil prices and rupee will also be important from the market point of view. Arvinder Singh Nanda, Senior Vice President, Master Capital Services, said, “In the coming days, the market will be dependent on some major macroeconomic data such as US S&P Global Manufacturing and Services PMI, Unemployment Claims, Crude Oil Inventories, FOMC’s comments, Federal Reserve’s interest rates. But the decision will react to UK inflation and euro zone inflation.