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The Indian stock market will depend on the US Federal Reserve's interest rate decision, wholesale price index (WPI)-based inflation data, and foreign institutional investor (FII) flows this week. Global trends and domestic economic indicators, such as crude oil prices and rupee movement, will determine the market direction.

Vikrant Shekhawat : Dec 16, 2024, 06:00 AM
Share Market Today: The direction of the Indian stock markets this week will depend on several key factors, including the US Federal Reserve's interest rate decision, wholesale price index (WPI) based inflation data and investment flow of foreign institutional investors (FIIs). Experts believe that along with these factors, trends from global markets will also affect the market movement.

Investors eye Federal Reserve meeting

According to Pravesh Gaur, Senior Technical Analyst, Swastika Investmart Limited, this week's market trend will be a combination of global and domestic factors. He said, "The Federal Reserve's policy decision and the performance of the US markets will deeply affect the market sentiment. Investors will focus on the possibility of a 0.25% cut in interest rates."

Apart from the Federal Reserve's policy decision, their comments on future monetary policy can also affect the investors' strategy. Ajit Mishra, Senior Vice President (Research), Religare Broking Limited also agreed with this and said that the signals from the Federal Reserve meeting, especially the steps to be taken regarding future interest rates, will be important for the market.

Domestic factors play an important role

At the domestic level, all eyes will be on the Wholesale Price Index (WPI) based inflation data to be released on Monday. This report will evaluate the progress of efforts by the government and the Reserve Bank of India (RBI) to ensure price stability.

According to Pravesh Gaur, "Domestic inflation levels and investment flows (both foreign and domestic) will play an important role in determining the market direction. Apart from this, crude oil prices and the movement of rupee against the dollar will also remain a matter of concern for market participants."

Last week's performance

Last week, the BSE Sensex gained 623.07 points (0.76%) and closed with positive signs. NSE Nifty also gained 90.5 points (0.36%). This indicates that there is a positive trend in the market, but investors are cautious about upcoming developments.

Potential market volatility this week

Experts believe that the Federal Reserve's decision, WPI inflation data and FII inflows may keep the market volatile this week. Investors are advised to remain cautious on the domestic front along with global cues.

Strategy for investors

This week's key indicators - the Federal Reserve meeting and WPI inflation data - will determine the market direction. In such a situation, investors will have to be cautious and prepare a strategy, so that the impact of volatility can be reduced and opportunities in the market can be taken advantage of.

This week's performance will depend on the wisdom and discretion of market participants, as these key factors can affect the market direction to a large extent.