Markets Face Holiday-Shortened Week Amid Fed Decision, Inflation Concerns
The upcoming week will be crucial for the stock market, with several key factors influencing its movement. The US Federal Reserve's interest rate decision and domestic inflation data are expected to drive the markets.
Ajit Mishra, SVP of Research at Religare Broking, pointed out that globally, developments in the US-Iran conflict and movement in Brent crude will remain critical market drivers. The immediate focus will be on US inflation and the Federal Reserve's policy decision.
The September 11 inflation report showed headline CPI rising 0.4 per cent month-on-month and holding at 3.4 per cent annually, while core inflation increased 0.3 per cent from the previous month but eased to 2.4 per cent year-on-year. The firmer monthly reading keeps inflation risks in focus.
Crude oil prices remain a significant external risk for India, according to Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm. Any renewed rise in crude could add to inflationary pressures and widen the import bill.