Investors Look Forward To Fed Policy Action, Economic Data: Experts

New Delhi: The outcome of the Federal Reserve’s policy meeting, domestic macroeconomic data and the global market trend will keep investors hooked in the week starting December 12, according to experts.

The two-day rate-setting meeting of the US central bank will kick off on December 13, which will be keenly tracked worldwide. Talk of policy tightening has kept emerging markets, including India, on the edge as this means a flight of capital to the US.

“We believe the market has already factored in a 25 basis point rate hike. Nevertheless, since the US is the world’s biggest economy and a major source of capital for emerging markets like India, something beyond that could bring selling pressure,” said Abnish Kumar Sudhanshu, director and research head at Amrapali Aadya Trading & Investments.

That apart, the global market trend and the trading activity of foreign and domestic institutional investors will be a key sentiment driver.

On the domestic front, the government will come out with November Consumer Price Index-based inflation on Tuesday while Wholesale Price Index-based inflation data is due on Wednesday.

At the start of this week, the equities will respond to the Index of Industrial Production data, released on Friday. Inflation is going to be the key, Rohit Gadia, founder and CEO of CapitalVia Global Research, said, adding, “We hold our medium-term outlook as positive.”

Proceedings in the ongoing winter session of Parliament will also be a matter of great interest for market players.

“Among stock-specific news, public sector oil marketing companies will be in focus as they undertake fuel price revision during the middle of this month,” said Vijay Singhania, founder-director of Trade Smart Online, a leading discount brokerage firm.

On a weekly basis, both key indices – the Sensex and the Nifty – recorded their best gains since September 2 by rising 516.52 points, or 1.96 per cent, and 174.95 points, or 2.16 per cent, respectively.