Indian Stock Market Faces Crucial Week Ahead of US Fed Decision

The Indian stock market is expected to be driven by several key factors next week, including the US Federal Reserve's policy decision and movements in crude oil prices. The Nifty entered a crucial support zone after posting its fifth consecutive weekly decline, according to analysts.

Indian markets will remain closed on Monday for Ganesh Chaturthi, giving investors their first opportunity on Tuesday to react to global market movements and crude oil prices. The focus will then shift to the US Federal Reserve's interest rate decision and economic projections, scheduled for Wednesday, September 16.

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. Markets are pricing in a high probability of a 25-basis-point rate hike following the latest inflation data.

Global monetary policy will remain in focus beyond the US, with the Bank of England and Bank of Japan also scheduled to announce their policy decisions during the week. 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.