Markets Mania: US Inflation Data And Policy Decisions May Placate Indian Indices

Markets Mania: US Inflation Data And Policy Decisions May Placate Indian Indices

This is crucial, because, if the inflation rate continues to rise, the US Fed would hold back, on the much-awaited interest rate cut. This would have a ripple effect on all markets, including the US and Indian indices alike.

Juviraj AnchilUpdated: Sunday, May 12, 2024, 03:45 PM IST
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Now that the earnings season has brought about number of major companies listed on the market and their performance at Dalal street would be dictated by other factors, that are in the pipeline.

Indian Indices Recover From Slump

The Indian indices had a fairly tumultuous week, after a fairly uneventful start, Sensex and Nifty plunged into the ocean of red. All the major indices ended Thursday, May 9, on a negative note, with a decline of over 1 per cent across the board. This loss was attributed to the mass exodus of FIIs from the Indian markets.

According to official data from the regulators, Foreign portfolio investors (FPIs) cumulatively sold stocks worth Rs 8,671 crore during the April alone.

However, the Indian markets recovered, ending on a relatively flat note. The marquee Sensex closed at 72,664.47, marking a gain of 260.30 points or 0.36 per cent. Similarly, the NSE Nifty ended at 22,055.20, up by 97.70 points, or 0.44 per cent.

 All the major indices ended Thursday, May 9, on a negative note, with a decline of over 1 per cent across the board.

All the major indices ended Thursday, May 9, on a negative note, with a decline of over 1 per cent across the board. |

Some of the factors, that might impact the markets this week include, the inflation data from both the US and India. The consumer price index data will be published by the Ministry of Statistics. The US is expected to publish its data for the month of April on May 15.

This is crucial, because, if the inflation rate continues to rise, the US Fed would hold back, on the much-awaited interest rate cut. This would have a ripple effect on all markets, including the US and Indian indices alike.

US Tariffs on Chinese Products

Given the relative stability in crude oil prices, another factor could play a role in the international market. The US recently declared that it would be announcing a new set of tariffs on Chinese products, brought into the US. The largest economy in the world, would be making these announcements on May 15. These tariffs include products ranging from EVs, medical supplies, and solar equipment.

These tariffs, as per reports, could be as high as 100 percent on some products. The impact, this move has and the possible retaliation from China could play a significant role in happenings in the equity market.

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