What will set the tone for Dalal Street this week?
With only four trading sessions, investors will be watching a clutch of key triggers, the US Federal Reserve's interest rate decision, domestic inflation data, crude oil prices and developments in the Middle East for cues on the market's next move, analysts said.Markets will be closed on Monday for Ganesh Chaturthi, leaving the September 15–16 Federal Open Market Committee (FOMC) meeting as the key event when trading resumes.
The Fed's rate decision and commentary on the future path of interest rates will be closely watched by investors."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, while core inflation increased 0.3 per cent from the previous month but eased to 2.4 per cent year-on-year.
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," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.Ajit Mishra, SVP of Research at Religare Broking, said the US Federal Reserve's monetary policy decision and its commentary on the future path of interest rates would dominate the week.
