‘RBI policy, West Asia conflict to drive markets this week’

New Delhi: The domestic stock market is expected to remain volatile this week as investors track the Reserve Bank’s monetary policy decision, key global macroeconomic data and the impact of the West Asia conflict, analysts said.

Movements in crude oil prices and foreign fund flows will also influence domestic equities, they added.

Vinod Nair, Head of Research, Geojit Investments Ltd, said the RBI’s Monetary Policy Committee (MPC) meeting will command centre stage domestically, with investors closely watching the central bank’s stance on inflation and growth.

In a holiday-shortened last week, the BSE benchmark Sensex declined 263.67 points, or 0.35 per cent, and the NSE Nifty fell 106.5 points, or 0.46 per cent.

Brent crude prices have remained elevated near $107 per barrel, sustaining concerns around imported inflation. Currency pressures have also intensified, with the rupee weakening sharply before recovering towards Rs 93 against the US dollar, aided by RBI intervention, he added.

Foreign institutional investor (FII) selling remains another key overhang, with March witnessing intense outflows of Rs 1.2 lakh crore, among the highest monthly outflows in the last

several years.