Indian Stock Markets Resume Trading Amid US Fed Decision, Inflation Data, Crude Oil Uncertainty

The Indian stock markets were closed on September 14 due to the Ganesh Chaturthi holiday. Trading resumed on Tuesday, September 15.

According to analysts, several key factors will drive market movement this week, including the US Federal Reserve's interest rate decision, inflation data, and crude oil prices.

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

Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, stated that 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.

Radhakrishnan added that movement in crude oil prices will be the most immediate external risk for India, which could intensify inflationary pressures, increase the import bill, weigh on the rupee, and reduce corporate margins.