Fed Rate Hike Looms Large Over Indian Stock Market

The Indian stock market is bracing for a potentially volatile week ahead of the US Federal Reserve's interest rate decision and global monetary policy cues. The Nifty ended Friday at 23,398.10, declining 79.70 points, or 0.34 per cent, while the Sensex closed at 74,781.76, down 120.83 points, or 0.16 per cent.

The US Federal Reserve's rate decision and FOMC Economic Projections will be the biggest global trigger for markets during the week. Markets are 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.

Crude oil prices will be another key variable for Indian markets, with Brent crude settling at $104.61 a barrel after briefly approaching the $110 mark. This keeps concerns over inflation, corporate margins, and India's import bill elevated.