Indian Stock Markets Closed Due to Ganesh Chaturthi, Key Drivers Loom

The Indian stock markets are closed on September 14 due to Ganesh Chaturthi. Trading operations will resume on Tuesday, September 15.

Last week, key equity indices declined over 1.5 per cent, with the NSE's Nifty50 falling 1.60 per cent and BSE's Sensex ending 1.93 per cent lower. On Friday, the Sensex closed at 74,781.76, down 120 points, while Nifty50 settled at 23,339, down 0.34 per cent.

Analysts say that the US Federal Reserve's interest rate decision and domestic inflation data will be major drivers for stock market movement this week. Movement in crude oil prices and developments in the West Asia conflict will also play a crucial role.

Ajit Mishra, SVP of Research at Religare Broking, said: 'Globally, developments in the US-Iran conflict and movement in Brent crude will remain critical market drivers.' He added that domestically, the focus will be on August WPI and CPI inflation data, followed by unemployment and trade reserves data.

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said: '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.' He added that the firmer monthly reading keeps inflation risks in focus and could reinforce pressure on global bond yields and the dollar, particularly if the Federal Reserve adopts a more hawkish tone.

Radhakrishnan also mentioned that movement in crude oil prices will be the most immediate external risk for India. If crude oil prices rise again due to disruption in the Middle East, it could intensify inflationary pressures, increase the import bill, weigh on the rupee and reduce corporate margins.