Fed Decision, Oil Prices, and Inflation Data Set to Drive Markets

The upcoming week will be crucial for global and Indian markets due to several key events. Equity markets in India will remain closed on Monday for Ganesh Chaturthi.

Analysts expect the US Federal Reserve's interest rate decision, domestic inflation data, crude oil prices, and developments in West Asia to drive market movements this week.

Ajit Mishra, SVP of Research at Religare Broking, stated that globally, developments in the US-Iran conflict and movement in Brent crude will remain critical market drivers. He added that the immediate focus will be on US inflation and the Federal Reserve's policy decision.

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said that for India, crude oil remains the most immediate external risk. He mentioned that any renewed rise in crude could add to inflationary pressures, widen the import bill, weigh on the rupee, and squeeze corporate margins.

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.