US Fed rate decision, tariff moves to shape market trends this week: Report

Analysts stated that this week’s equity market fluctuations will be influenced by the US Fed interest rate decision, global trends, tariff-related changes, and the trading activities of foreign investors. Within the macroeconomic data release, the WPI inflation for February will be revealed on Monday.

“Continued uncertainties regarding global trade and concerns over a US recession might keep affecting the momentum of the domestic market,” stated Vinod Nair, Head of Research at Geojit Financial Services.

Nonetheless, the adjustments in valuations after recent corrections, combined with positive elements like declining crude oil prices, a softer dollar index, and anticipated growth in domestic earnings in the upcoming quarters, could reduce volatility and is projected to foster stability amidst existing trade uncertainties, he stated.

“This week’s release of China’s retail sales growth data and industrial production data will provide a clearer understanding of the Chinese economic growth outlook,” Nair said.

“Last week, the Nifty-50 ended lower by 0.7 per cent at 22,397 level on account of weak global cues resulting from the uncertainty around US trade policies.

“This week, we expect the market to remain range-bound with some volatility and sector rotation, driven by global market trends and ongoing developments in the US tariff policies,” Siddhartha Khemka, Head-Research, Wealth Management, Motilal Oswal Financial Services, said.

In a holiday-shortened last week, the BSE benchmark Sensex declined 503.67 points, or 0.67 per cent, while the NSE Nifty dipped 155.21 points, or 0.68 per cent.

“Investors are nervous about the likely imposition of tariffs on Indian goods by the Trump administration and its overall impact going ahead, hence caution with a negative bias could prevail for some more time,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.