News

Published: Apr 3, 2023
Updated: Apr 3, 2023

RBI Interest Rate Decision and Global Trends to Influence Markets in Short Week, Say Analysts

As markets prepare for a holiday-shortened week, analysts are predicting that the RBI's interest rate decision, macroeconomic data, and global trends will set the tone for the equity market. With the Indian equity markets closed on Tuesday for 'Mahavir Jayanti' and on Friday for 'Good Friday,' investors will keep an eye on foreign portfolio investors' trading activity, according to industry experts. Furthermore, this week's macroeconomic data includes S&P global manufacturing PMI and services PMI data scheduled on April 3 and April 5, respectively. In addition, the outcome of the RBI MPC policy review meeting on April 6 will be a crucial highlight.

Auto Sales Data to Drive Market Sentiment

As market participants remain busy with scheduled events and data, analysts expect strong performances from Maruti Suzuki, Hyundai, and Tata Motors, which reported their highest- ever dispatches to dealers last fiscal, enabling the domestic passenger vehicle industry to log in the best-ever performance to date. Furthermore, the investment activity of foreign institutional investors (FIIs) and domestic institutional investors (DIIs) will also be monitored closely.

Global Cues to Play a Key Role

Apart from domestic factors, global cues and trends of foreign flows will also be in focus, says Ajit Mishra, VP - Technical Research, Religare Broking Ltd. Last week, markets in Asia, Europe, and the US ended positively as concerns about further banking turmoil receded, leading to gains in the 30-share BSE benchmark by 2.54% or 1,464.42 points. In the near term, the focus will now remain on RBI's policy meeting this week.

As investors await the outcome of the RBI MPC meeting scheduled for this week and PMI data, the markets will remain influenced by both domestic and global factors. While the impact of macroeconomic events and global cues on the markets remains uncertain, experts predict that foreign flows and FII investment activity will continue to play a crucial role in shaping the equity markets' direction in the short term.