Volatility Ahead: US Fed Rate Decision, BRICS Summit, and Inflation Data to Guide Indian Equity Market

The Indian equity market is expected to be volatile in the coming week due to several key factors. The US Federal Reserve's policy decision, the BRICS summit trade pacts, and domestic inflation data are among the triggers that will guide investor sentiment.

On September 11, the Nifty fell to 23,398.10, declining 79.70 points or 0.34 per cent, while the Sensex closed at 74,781.76, down by 120.83 points or 0.16 per cent. However, the market is bracing for a potentially eventful week starting September 14.

The US Federal Reserve's policy decision on interest rates will have a ripple effect on the Indian stock market. A hawkish tone from the Fed could trigger a capital flight from emerging markets like India back to US treasury bonds, resulting in selling pressure on Indian equities. On the other hand, dovish commentary can hint at monetary easing and turn investor sentiment positive.

The BRICS summit trade pacts may also impact market moves. The New Development Bank is expected to ink new trade agreements or infrastructure financing mechanisms, which could boost domestic manufacturing, capital goods, and logistics stocks.