Will Nifty cross 25,000 this week? Fed meeting & 5 other factors to watch out for
Nifty cross 25,000 this week? Fed meeting & 5 other factors to watch out for
Driven by positive US GDP data, expectations of improved global demand and unflinching faith of domestic investors, the stock market has recovered all its post-Budget losses to leave many market veterans surprised.
Given Friday's momentum, Sensex looks poised to break past its previous peak and Nifty may even touch 25,000-level for the first time in history.
«Moving forward, the direction of the domestic market will likely be influenced by the progress of the earnings season. Additionally, global economic updates, including US Fed & BoE monetary policies, US employment data, and Eurozone GDP figures, are expected to impact market trends,» said Vinod Nair of Geojit Financial Services.
Here are 6 key factors that may dictate Nifty in the week:
1) US Fed meeting
The US Federal Reserve is set to announce its interest rate decision on July 31st, which will be crucial as the market anticipates a potential rate cut soon this year.
«US data should give officials more confidence that inflation is heading to 2% and we suspect attention will start focusing on achieving a ‘soft landing’ for the economy. Next week’s FOMC meeting should lay the groundwork for a September rate cut as policy starts shifting from restrictive territory to something more neutral,» ING Group said.
2) Q1 Results
On the domestic front, Q1 earnings will remain a key trigger, with many large companies scheduled to report their results. On Monday, the market will react to
