The past week has not been good for stock market investors. The stock market has seen a steady decline in the last week. On Friday also the stock market closed with a fall.
The monetary policy of the Reserve Bank of India (RBI) is to be announced on 30 September.
The past week has not been good for stock market investors. The stock market has seen a steady decline in the last week. On Friday also the stock market closed with a fall. The Sensex had fallen by over 1,000 points. Due to this, investors had lost Rs 4.9 lakh crore in one day. In such a situation, now the investors in the market are worried about the coming week. The monetary policy of the Reserve Bank of India (RBI) is to be announced on 30 September, on which the market is watching. Whether the central bank will increase the repo rate or not, it will decide the fate of the investors in the market.
The trend of global markets will also affect
Market experts say that the Reserve Bank of India’s decision on interest rates will affect the market. Apart from this, according to him, due to the time for settlement of monthly derivatives contracts, there may be volatility in the stock markets this week. Analysts also say that the trend of global markets will also affect the sentiment here. The Federal Reserve and other major central banks of the world have increased interest rates in recent times. It is believed that taking cues from global central banks, the Reserve Bank will also increase the policy rate repo in the monetary policy review. This will be the fourth consecutive time that the central bank will increase policy rates to control inflation.
Let us tell you that the Reserve Bank has increased the repo rate by 1.40 percent since May. Analysts say that the central bank will further increase the policy rate by half a percentage point. This will increase the repo rate to a three-year high of 5.9 percent.
Vinod Nair, Head of Research, Geojit Financial Services, said this week investors will be watching the outcome of the Reserve Bank’s monetary review meeting on September 30. Nair said that he expects the market to be guided by global developments and the stance of foreign institutional investors (FIIs). At the same time, Santosh Meena, Head of Research, Swastika Investmart Limited said that this week also the global trend will dominate the domestic markets. According to him, our market will remain volatile due to RBI’s monetary review and September futures and options settlement. Meena said that America’s gross domestic product (GDP) figures will remain important.
The market will also keep an eye on the movement of the rupee
Apart from this, the rupee’s trend will also be important for the market. On Friday last week, the rupee has crossed the level of 81 per dollar for the first time. Ajit Mishra, Research Vice President, Religare Broking said that he believes the market is going to be very volatile due to RBI’s monetary review and settlement of monthly derivatives contracts. Apart from this, the sentiment here will also be affected by the pressure of global markets.
Apoorva Seth, Head-Market Environment at Samco Securities, said that global markets will keep an eye on the much-awaited US GDP figures. He said that the focus of everyone’s discussion on the domestic front will be the monetary review of the Reserve Bank.
Last week, the 30-share Sensex of BSE has come down 741.87 points or 1.26 per cent. At the same time, the Nifty of the National Stock Exchange has lost 203.50 points or 1.16 percent. Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services said that the Indian markets will be guided by the global trend. Apart from this, the eyes of the market will be on the monetary review of the Reserve Bank.
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