Fed Meet, FII Action Among 8 Factors to Impact Sensex, Nifty This Week

Market Overview

Indian benchmark indices closed higher, fueled by auto, bank, and pharma stocks, while investors await the Fed's policy decision amid expectations of a rate cut. Corporate actions, including dividends and stock splits, are lined up, and several IPOs are set to hit the market. FII/DII activity, technical factors, rupee movement, and crude oil prices will also influence market direction.

Key Factors Influencing the Market This Week

Federal Reserve Meeting
The US Federal Reserve’s two-day monetary policy meeting begins this week, with the outcome expected on Wednesday, September 17. Expectations are high for a 25 basis points rate cut due to labor market weakness outweighing inflation concerns.

FII/DII Activity
Foreign Institutional Investors (FIIs) have been net sellers, offloading equities worth ₹11,169 crore during the week ending September 12. Domestic Institutional Investors (DIIs) have been net buyers, providing support to the market.

Technical Indicators
The Nifty index has managed to stay in the green, with support around the 25,000 mark. A decisive move beyond 25,150 may set the stage for a rally towards 25,500 in the near term.

Corporate Actions
Several companies are expected to announce dividends and stock splits, which could influence investor sentiment and stock prices.

Initial Public Offerings (IPOs)
A host of IPOs are lined up, which could attract investor attention and capital flows into the market.

Rupee Movement
The Indian Rupee's movement against the US Dollar will impact the profitability of export-oriented companies and foreign investment inflows.

Crude Oil Prices
Fluctuations in crude oil prices can affect inflation and the cost structures of companies, particularly in the transportation and manufacturing sectors.

Global Market Cues
Global markets, especially Wall Street, will provide cues that could influence investor sentiment and market direction.

Market Outlook

The near-term market outlook remains positive, supported by a rising support base around the 24,900 level. FIIs and DIIs were net buyers, while the Indian rupee recovered, contributing to the positive market sentiment. However, potential volatility around central bank events should be anticipated.

By Nehal Taparia

This content is for educational and knowledge purposes only and should not be considered as investment or Trading advice. Please consult a certified financial advisor before making any investment or Trading decisions