US Fed's Rate Decision: Key Market Driver This Week

The US Federal Reserve's interest rate decision will play a crucial role in shaping trends in the domestic equity market this week. Other factors include global movements and foreign investor activities. Investors are closely monitoring the upcoming Federal Open Market Committee meeting and key US economic data releases.

The US Federal Reserve's interest rate decision will be a crucial determinant of trends in the domestic equity market this week, alongside global movements and patterns of foreign investor activity. Analysts point out that the market's flat finish last week, with Sensex and Nifty edging slightly, sets the context for this week's developments.

Ajit Mishra, SVP of Research at Religare Broking Ltd, noted that markets will observe India's CPI release on December 12 while globally, the spotlight remains on the Fed's decision. This could affect risk sentiment in emerging markets already facing currency pressures. The rupee's recent breach of 90 to a dollar will also be closely watched.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, highlighted the importance of the US FOMC meeting on December 9–10, accompanied by critical US economic data. Movements in the US dollar index and Treasury bond yields are vital indicators, with any drastic changes potentially impacting global equity and debt markets' risk appetite.

(With inputs from agencies.)