Indian Equities Braced for Volatility as Fed Decision Looms
The Indian equities market is expected to be volatile in the coming week due to several global and domestic factors. The US Federal Reserve's interest rate decision, Brent crude prices above $104 a barrel, and other global monetary policy signals will be closely watched.
The Fed's announcement on Wednesday, September 16, at 2 pm EDT (11:30 pm IST) is the biggest global trigger for investors this week. Markets are pricing in a strong probability of a 25 basis point rate hike after the latest US inflation numbers were released.
Domestically, the Nifty ended Friday at 23,398.10, down 79.70 points or 0.34 per cent, while the Sensex slipped 120.83 points, or 0.16 per cent, to 74,781.76. The Nifty touched a three-month low during the week.
The elevated Brent crude prices above $104 a barrel are adding pressure on India's inflation and corporate margins. With global cues likely to dictate market direction this week, investors will be closely watching the developments in global equities, crude oil, and bond yields.