RBI Policy Decision to Watch as India's External Balances and Inflation Outlook Face Pressure

The Reserve Bank of India's (RBI) monetary policy decision is set to be the principal domestic event this week. With investors tracking signals on the central bank's policy stance, inflation outlook, and growth projections.

The US Federal Open Market Committee (FOMC) minutes will also offer insights into the extent of support among US policymakers for further monetary tightening beyond the September rate increase. According to Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm.

The week will mark the beginning of the September-quarter earnings season. With IT major TCS scheduled to announce its results on October 8. Retail major DMart will also be among the key companies reporting their earnings.

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The domestic market enters the week after ending lower for the eighth consecutive week. Weighed down by foreign selling, rupee weakness, elevated crude prices, and rising global bond yields.

As the global economy navigates uncertainty, crude oil prices continue to exert significant influence, with Brent crude hovering above the $100 per barrel threshold. India's September services sector and composite PMI reports.

Slated for release on October 6, will provide valuable insight into the country's economic trajectory. Meanwhile, foreign institutional investors' market activity remains a key driver of market sentiment.

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Global bond yields will be closely watched for their impact on risk appetite and foreign flows. A moderation in US Treasury yields could ease pressure on emerging-market assets. Meanwhile, a further rise could make US assets relatively more attractive and encourage continued portfolio reallocation away from emerging markets.

According to Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.

The Sensex lost 1,986.04 points, or 2.68 per cent, last week, while the Nifty declined 718.55 points, or 3.10 per cent. In September, the Sensex fell 4,476.98 points, or 5.81 per cent, while the Nifty dropped 1,459.95 points, or 6 per cent.