'RBI policy, global trends to direct markets this week'

New Delhi: The RBI interest rate decision, macroeconomic data and global trends would dictate the equity markets, which is showing some signs of correction after a stellar run, this week, analysts said.

Besides, investors will also track the movement of the dollar index and US bond yields this week, they said.

"The market will have an eye on the global data to get further direction. On the domestic front, we don't have many negative cues but it will be important to listen to the commentary of RBI governor in the upcoming policy scheduled on 8th October where what he says about inflation will be important," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

On October 8, TCS will announce its Q2 earnings, Meena said.

The movement of the dollar index, US bond yields will also play an important role in the direction of global markets while crude oil prices will have a major impact on Indian markets, he added.

"This week, the RBI is scheduled to announce its monetary policy. India's service PMI is also due to be released this week," Vinod Nair, Head of Research at Geojit Financial Services said.