Market Sentiment Sensitive to Global Developments Ahead of Fed Decision

The stock market is expected to remain sensitive to global developments in the upcoming week. Analysts say that the West Asia conflict, crude oil prices, and US inflation data will be key factors influencing investor sentiment.

Ajit Mishra, SVP of Research at Religare Broking Ltd, notes that the market will closely monitor the impact of stronger-than-expected US employment data on expectations around the Federal Reserve's September policy decision. This data has brought attention to the Fed's upcoming meeting and whether it could influence their policy stance.

The US inflation reading is also expected to be closely watched for its potential impact on expectations around Federal Reserve policy and global market sentiment. With crude prices surging amid the unresolved Middle East conflict, oil prices have become a persistent overhang on market sentiment.