The direction of the stock market will be decided by the US Central Bank’s decision on interest rates.
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New Delhi. The direction of local stock markets will be decided by the US central bank Federal Reserve’s decision on interest rates this week. Apart from this, the trend of global markets and activities of foreign investors will also be important for the market. Analysts have expressed this opinion. Last week, investor sentiment was affected by the huge fall in shares of small and medium companies, withdrawal of foreign funds and high prices of crude oil in the international market.
Experts say that during the week many central banks of the world will announce their stance on monetary policy. In such a situation, there may be fluctuations in the stock market in the near term. “Everyone’s focus will be on monetary policy this week,” said Pravesh Gaur, senior technical analyst at Swastika Investmart. The two-day policy meeting of the Federal Reserve is going to start on March 19. The US central bank will announce its decision on interest rates on March 20. He said that apart from this, China will announce key rates on one-year and five-year loans.
The Bank of Japan (BOJ) will announce its decision on interest rates on March 19. Japan will also release inflation data on March 22. He said that apart from this, the movement of rupee against dollar, yield on US bonds and fluctuations in crude oil prices will all be kept an eye on. Last week, the 30-share BSE Sensex lost 1,475.96 points or 1.99 per cent. At the same time, Nifty of National Stock Exchange fell by 470.2 points or 2.09 percent. Prashant Tapase, senior vice president (research), Mehta Equities Limited, said that amid uncertainty, investors will keep an eye on the trend of global markets for their investments in stocks.
Motilal Oswal Financial Services Ltd. Siddharth Khemka, head of retail research, said that this week is going to be important from the economic point of view. Many major central banks globally will announce their policy stance. Khemka said, “In such a situation, we believe that there will be volatility in the market in the near term.” Investors’ focus will be on big and safe stocks.
Analysts say that the focus of investors will now be on the upcoming Lok Sabha elections. The seven-phase Lok Sabha elections are going to start from April 19. Counting of votes will take place on June 4. Vinod Nair, head of research at Geojit Financial Services, said, “In the coming week, investors will focus on the monetary policy decisions of global central banks. The Bank of Japan and the Bank of England, along with the Federal Reserve, will announce their decisions on interest rates during the week.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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