Market outlook: Indices to track inflation data, US Fed interest rate decision this week

Market outlook: Indices to track inflation data, US Fed interest rate decision this week PTI Updated: December 12th, 2022, 08:40 IST in Business 0 National Stock Exchange NSE (PTI) Share on Facebook Share on Twitter Share on WhatsApp Share on Linkedin New Delhi: The trading activity in the domestic equity market this week will be largely driven by a host of macroeconomic data announcements and the US Fed interest rate decision, analysts said. Industrial Production data and retail inflation rate are scheduled to be announced on Monday. Besides, wholesale inflation data will be released on Wednesday.

“This week is going to be crucial in terms of global cues, where the US inflation numbers and the outcome of US Fed policy decision will be the most important events for the market. “On the domestic front, our industrial production and retail inflation numbers will be announced on December 12, while wholesale inflation numbers will be announced on December 14,” said Santosh Meena, Head of Research, Swastika Investmart Ltd. Apart from this, news flows from China, the movement of crude oil prices and the dollar index will be other important factors.

Institutional flows also need to be watched, as FIIs have been net sellers for the past week, Meena further said. Foreign institutional investors (FIIs) sold equities worth Rs 4,305. 97 crore, throughout the week.

“The leader of the current bull market, Nifty Bank, continued its strong show despite the hawkish RBI policy, Meena added. On Friday, Nifty Bank ended 36. 60 points or 0.

08 per cent higher to settle at 43,633. 45. Last week, the Reserve Bank of India (RBI) raised the key interest rate by 35 basis points (bps) in a move to bring down inflation to a tolerable limit.

“The RBI raised policy rates by 35 basis points as expected while remaining cautious and signalling a further rate hike in the upcoming meeting. The policy stance was maintained as ‘withdrawal of accommodation’ to bring inflation within the target range while supporting growth,” said Vinod Nair, Head of Research at Geojit Financial Services. According to Nair, the GDP forecast for FY23 was brought down from 7.

0 per cent to 6. 8 per cent, considering the spillover effect of the global economic slowdown. Crude oil prices dropped.

However, while easing COVID curbs in China benefited the demand outlook, fresh sanctions on Russian oil further added volatility to global oil markets. Last week, the 30-share BSE Sensex fell 686. 83 points or 1.

09 per cent. On Friday, the Sensex settled at 62,181. 67, and the NSE Nifty closed at 18,496.

6. “The IT sector witnessed the highest profit booking after warning of a potential slowdown in business due to global recession fears. The market is currently trading at premium valuations; slowing earnings growth will impact market sentiment,” Nair added.

PTI Tags: BSE Market outlook Nifty NSE Sensex Share Tweet Send Share Suggest A Correction Enter your email to get our daily news in your inbox. Leave this field empty if you’re human: Related Posts Salesforce workers brace for fresh round of layoffs December 12, 2022 Elon Musk could lose world’s richest person title December 11, 2022 Apple spent nearly $100 billion on product innovation in last 5 years: Report December 10, 2022 All-India average wholesale prices of wheat up 22% so far this year: Govt December 9, 2022 Rupee gains 19 paise to 82. 19 against US dollar in early trade December 9, 2022 Sensex rises 115 points in early trade; Nifty above 18,640 December 9, 2022 Leave a Reply Cancel reply Your email address will not be published.

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