Inflation, industrial production and Fed results will determine market movements

Mumbai The movement of the domestic stock market, which fell more than one percent last week under the pressure of profit-booking at the local level amid a weak global trend, will be determined by the monetary policy review of the US Fed Reserve along with retail and wholesale inflation and industrial production data next week.

Last week, the BSE’s thirty-share sensitive index Sensex fell 686.83 points, or 1.1 percent, to 62181.67 points on the weekend and the National Stock Exchange (NSE) Nifty fell 199.5 points, or 1.1 percent, to 18496.60 points.

Similarly, the BSE Midcap fell 226.09 points to 26095.56 on the weekend and Smallcap fell 353.17 points to 29558.56 on the week under review.

According to analysts, profit-booking in Sensex and Nifty last week led to volatile global cues and selling in IT stocks.

In terms of global cues, next week is going to be important for the market. The US inflation data will come on December 13 and the result of the monetary policy review of the US central bank Federal Reserve, the impact of which can be seen on the market.

On the domestic front, industrial production and retail inflation data for November will be released on December 12, while wholesale inflation data will be announced on December 14.

They will play an important role in guiding the market next week. Apart from this, news coming out of China, movement of crude oil prices and dollar index will be other important factors.

Along with this, the market will also keep an eye on the investment flow of Foreign Institutional Investors (FIIs). FIIs have been selling since last one week.

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