Will there be a huge fall or recovery this week too? Know from experts how the market will be

Due to the timing of settlement of monthly derivatives contracts, the stock markets may see volatility this week. Apart from this, the eyes of the investors will be on the decision of the Reserve Bank of India (RBI) on interest rates. Analysts have expressed this opinion. The Reserve Bank will announce the results of the bi-monthly monetary review meeting on September 30. Analysts 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.

RBI may increase repo rate

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 raise policy rates to check inflation. 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 raise the repo rate to a three-year high of 5.9 per cent.

All eyes on RBI MPC meeting

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. “We anticipate that the market will take direction from the global developments and the stance of Foreign Institutional Investors (FIIs),” Nair said.

America’s GDP figures important

Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The global trend will continue to dominate the domestic markets this week as well. Our market will remain volatile due to RBI’s monetary review and futures and options settlement in September. America’s Gross Domestic Product (GDP) figures will be important.” Apart from this, the rupee’s trend will also be important for the market. On Friday last week, the rupee crossed the level of 81 per dollar for the first time.

Global markets trend important

Ajit Mishra, Research Vice President, Religare Broking said, “We believe that the market is going to be very volatile due to the monetary review by the Reserve Bank and settlement of monthly derivatives contracts. Apart from this, the pressure from global markets will also affect the sentiment here.” Apoorva Seth, Head – Market Environment at Samco Securities said that global markets will be watching the much awaited US GDP data. He said that the focus of everyone’s discussion on the domestic front will be the monetary review of the Reserve Bank.

Sensex fell 1.26 percent last week

Last week, the 30-share BSE Sensex fell 741.87 points or 1.26 per cent. On the other hand, the Nifty of the National Stock Exchange lost 203.50 points or 1.16 per cent. 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 market will keep an eye on the monetary review of the Reserve Bank.