Global Markets Eye Fed Decision Amid Oil Price Volatility

The week ahead will be crucial for global and Indian markets due to several key events. The US Federal Reserve's interest rate decision, domestic inflation data, crude oil prices, and developments in West Asia will drive market movement.

Ajit Mishra, SVP of Research at Religare Broking, said that globally, the US-Iran conflict and Brent crude price movements are critical drivers for markets. He added that this week will be dominated by the Fed's monetary policy decision and commentary on interest rates.

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.

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said that for India, crude oil remains the most immediate external risk. Any renewed rise in crude, particularly if disruptions to Middle East oil flows intensify, could add to inflationary pressures, widen the import bill, weigh on the rupee and squeeze corporate margins.