The decision on the interest rates of the Reserve Bank of India will mainly decide the direction of the local stock markets this week. Analysts have expressed this opinion.
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The decision on the interest rates of the Reserve Bank of India will mainly decide the direction of the local stock markets this week. Analysts have expressed this opinion. He says that apart from this, global trends and activities of foreign funds will also give direction to the market. Market investors will also keep an eye on the results of state assembly elections during the week. Santosh Meena, Head of Research, Swastika Investmart Limited, said that due to global cues, the market will remain volatile.
The market will also keep an eye on the results of the assembly elections.
Meena, however, said market participants would also keep an eye on domestic indicators such as the outcome of the Reserve Bank’s Monetary Policy Committee (MPC) meeting and the results of assembly elections in Gujarat and Himachal Pradesh. The results of the assembly elections will come on December 8.
Meena further told that on the global front, there has been a decline in bond yields and dollar index in the US and the market will also watch this further. On the macro economy front, the Purchasing Managers’ Index (PMI) data for the services sector will come on Monday. Siddharth Khemka, head of retail research at Motilal Oswal Financial Services, said investors are eagerly waiting for the results of the assembly elections.
Last week, the 30-share Sensex of BSE has gained 574.86 points or 0.92 per cent. Apoorva Seth, head of market outlook at SAMCO Securities, believes that the biggest development for the stock markets this week is the Reserve Bank’s monetary review.
The movement of rupee will also affect
Amol Athawale, deputy vice president – technical research, Kotak Securities Ltd., said the two key developments ahead for the market are the Reserve Bank’s monetary review and the Federal Reserve’s meeting to be held in mid-December. He said that these will decide how the mood of the investors is going to be in the near future. Along with this, the movement of Brent crude oil and rupee will also be important for the direction of the market, he said.
Vinod Nair, Head of Research, Geojit Financial Services, said that the direction of the market will be decided by the outcome of the Reserve Bank’s monetary meeting. Nair said that due to high valuations, Federal Reserve meeting and COVID curbs in China, there will be a lot of volatility in the market in the coming weeks.
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