Indian The decision of the Reserve Bank (RBI) on interest rates, the conflict in West Asia and the activities of foreign portfolio investors (FPIs) will decide the direction of local stock markets this week. Analysts have expressed this opinion. Apart from this, the quarterly results of information technology giant Tata Consultancy Services (TCS), domestic macro economic data and prices of Brent crude oil will also give direction to the market. Last week, there was a huge fall in the stock market due to increasing tension in West Asia and withdrawal of foreign funds.
MPC meeting will be held
“On the domestic front, all eyes will be on the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India,” said Pravesh Gaur, senior technical analyst at Swastika Investmart Ltd. The MPC meeting will start on October 7. The results of the three-day meeting will be announced on Wednesday i.e. October 9. He said that the second quarter results season of companies is starting with TCS. He said that the liquidity situation on the domestic front remains strong. In such a situation, cash flow from overvalued sectors may move towards sectors with attractive valuations. Gaur said that apart from this, commodity prices, US dollar index and important macro data of America will also be important for the market.
There was a big decline last week
Last week, the 30-share BSE Sensex fell 3,883.4 points or 4.53 percent. At the same time, there was a loss of 1,164.35 points or 4.44 percent in the National Stock Exchange’s Nifty. Vinod Nair, head of research, Geojit Financial Services, said, “The new milestones of 26,000 and 85,000 points for both Nifty and Sensex respectively were a short time away due to the shocks caused by West Asia and some undervaluation by foreign funds. The market was affected by the shift towards Asian markets. Due to this the market fell by more than four percent.
Investors lost Rs 16.26 lakh crore
Amid the huge fall in the stock market, investors’ capital decreased by Rs 16.26 lakh crore in five days. Palka Arora Chopra, Director, Master Capital Services Ltd. said, “The market trend will depend on key domestic and global economic data. RBI’s decision on interest rates is to come during the week. Apart from this, industrial production figures will also come. Also, details of the Federal Open Market Committee (FOMC) meeting in America, unemployment figures and America’s GDP figures are also to come. Ajit Mishra, Senior Vice President (Research), Religare Broking Limited, said that investors are keeping an eye on geopolitical developments. And its impact on crude oil prices will remain. Mishra said, “Apart from inflow of foreign funds, domestic inflow will also be important for the market. On the domestic front, all eyes are on the MPC meeting. The results of this meeting will be announced on October 9.
