This week, the big event is the U.S. Federal Reserve’s policy meeting, with the possibility of a rate cut driving investor expectations.
Trade negotiations between India and the U.S. will also be closely watched, especially in light of recent tariffs impacting Indian expor
ts.
Inflation data—both headline CPI and food/wholesale prices—are expected to provide important clues about domestic demand and price pressure.
Foreign Institutional Investor (FII) flows will remain a major swing factor; recent outflows have added stress to equity and currency markets
.
Technical trends in auto, banking, and pharma stocks will likely guide short-term trading strategies.
The movement of crude oil prices and their pass-through effects into energy costs is another variable
investors will monitor closely.
Rupee stability vis-à-vis USD will be watched, especially in the context of inflation and global interest rate shifts.
IPO activity and corporate earnings announcements may contribute to volatility and sectoral divergence.
Analysts believe that if inflation and global risks remain contained, optimism might continue in domest
ic markets.
On balance, the week ahead is likely to be defined by a tug-of-war between positive reform signals and global uncertainty.