Fed Decision and Crude Oil Prices Set to Drive Indian Equities Next Week

The upcoming week will be crucial for Indian equities as several key events are expected to influence market movements. The US Federal Reserve's policy decision, scheduled for September 16, will be a major trigger, with markets pricing in a high probability of a 25-basis-point rate hike following the latest inflation data.

US headline CPI increased 0.4 per cent month-on-month and remained at 3.4 per cent annually in the September 11 report. Core inflation also rose 0.3 per cent from the previous month, although it eased to 2.4 per cent year-on-year.

An unchanged policy rate or a hike accompanied by balanced guidance could support a relief rally if investors interpret the outcome as less restrictive than currently feared.

Global monetary policy cues will remain in focus beyond the US, with the Bank of England and Bank of Japan also scheduled to announce their policy decisions during the week.