Fed Decision, Inflation to Drive Markets as Crude Oil Prices Remain a Concern

The upcoming week is expected to be dominated by several key market drivers, including the US Federal Reserve's interest rate decision and inflation data. Equity markets in India will remain closed on Monday for Ganesh Chaturthi.

Ajit Mishra, SVP of Research at Religare Broking, said that globally, developments in the US-Iran conflict and movement in Brent crude prices will be critical market drivers. On the domestic front, August WPI and CPI inflation data, followed by unemployment and balance of trade data, will remain in focus.

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, noted that the September 15-16 FOMC meeting will be the week's principal global catalyst. He added that for India, crude oil remains the most immediate external risk, and any renewed rise in crude could add to inflationary pressures.

Last week, the BSE benchmark Sensex tumbled 1,733.67 points, or 2.26 per cent, and the NSE Nifty declined 499.6 points, or 2 per cent. Ponmudi R, CEO of Enrich Money, said that global macroeconomic and geopolitical risks will keep Indian equities on edge in the week ahead.