Mumbai: as investors await the Reserve Bank of India’s policy decision, the start of second-quarter earnings and developments in West Asia after another round of losses.
The RBI’s stance on interest rates, inflation outlook and growth projections will help shape expectations for markets. Company results will offer early clues about business performance and demand.
RBI And Earnings In Focus
Investors will closely track the central bank’s assessment of rising energy costs and wider price pressures. Its comments on economic growth will also be important as global uncertainty continues to weigh on sentiment.
could bring stock-specific moves as companies report their July-September performance.
Domestic economic data offered some support. Industrial production grew 8 per cent in August, compared with an upwardly revised 7.4 per cent in July. Manufacturing output increased 9 per cent, while electricity and gas supply rose 12.3 per cent.
West Asia Remains Key
Market watchers believe a meaningful easing of tensions in West Asia could spark a sharp recovery. However, higher US Treasury yields, inflation concerns and expensive energy continue to keep investors cautious.
Rising long-term US bond yields have also raised concerns about tighter global financial conditions and reduced the appeal of emerging-market assets.
Brent crude has eased from recent highs as exports through the Strait of Hormuz recovered closer to pre-war levels. Further oil price movements will remain an important market trigger.
Nifty Levels To Watch
The Sensex ended last week at 71,909.70, while the Nifty closed at 22,421.95 after losing over 3 per cent. The Nifty recorded its eighth consecutive weekly decline.
Analysts see immediate resistance at 22,800 and 23,000. A sustained rise above this range could ease selling pressure. Support stands at 22,350 and 22,180.
Weak momentum suggests continued pressure, although brief rebounds remain possible. Investors will also monitor upcoming US economic releases for signals on employment, manufacturing activity and the outlook for interest rates.