US Fed Rate Decision, WPI Inflation Data To Guide Stock Markets This Week

New Delhi: Indian stock markets will take direction this week from two big triggers — the US Federal Reserve’s policy decision and India’s wholesale price index (WPI) inflation data, analysts said. Investors also expect updates on the US-India trade front, along with the movement of foreign fund inflows, rupee and crude oil prices, to influence trends.

US Fed decision in focus

The biggest global event this week is the US Federal Open Market Committee (FOMC) meeting on September 17. Markets widely expect at least a 25 basis points rate cut, amid signs of weakness in the US job market. Such a move could boost global investor confidence and drive flows into emerging markets, including India

Domestic cues also matter

On the home front, analysts say WPI inflation data and any progress in US-India trade talks will impact sentiment. "FII flows will continue to play a pivotal role in sustaining market momentum," said Santosh Meena, Head of Research at Swastika Investmart.

Market performance last week

The upbeat sentiment was visible last week, when the BSE Sensex gained 1,193.94 points or 1.47 per cent, while the NSE Nifty advanced 373 points or 1.50 per cent. The Nifty closed higher for eight sessions in a row, and the Sensex marked a five-day winning streak.

Global optimism lifts mood

"Global sentiment remains the key driver, with optimism across US and Asian markets supported by rising expectations of a Federal Reserve rate cut, fuelling risk appetite," said Ponmudi R, CEO of Enrich Money.

Broader outlook positive

Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, added that Indian equities are likely to extend their gradual gains this week. Optimism around GST-led consumption growth, hopes of a Fed rate cut, and better mood around US-India trade discussions are expected to support the market.