'Inflation data, Fed rate decision major events for markets this week'

New Delhi: Domestic macroeconomic data announcements and the US Federal Reserve's interest rate decision are the major events to drive sentiments in the equity market this week, analysts said.

"The market will remain busy this week to deal with outcomes of the policy of global central banks where the decision of the US Fed will be the most important. European Central Bank, Bank of England and Bank of Japan will also come out with their monetary policies this week.

"The impact of the Omicron variant on the market has cooled off but the news flows related to Omicron may continue to cause some volatility," said Santosh Meena, head (research) at Swastika Investmart Ltd.

"Domestic inflation data and the FOMC meeting will be crucial events that will dominate movements in the Indian benchmark indices," Yesha Shah, head (equity research) at Samco Securities, said.

Last week, the BSE benchmark gained 924.31 points or 1.60 per cent.

"Markets in the immediate term will keenly watch out for the actions on asset tapering and key policy rates in the upcoming US Federal Reserve meet," said Shrikant Chouhan, head of equity research (retail) at Kotak Securities, Ltd.

The movement of Brent crude, rupee and foreign investors will also be watched by investors.