Ukraine crisis, Fed key factors for markets

The Russia-ukraine crisis, the US Fed interest rate decision and release of domestic inflation data are some of the major factors that will drive the stock markets in a holiday-shortened week, analysts said. Market experts believe that stock markets are likely to stay volatile until the existing headwinds subside.

“FOMC meeting and Russiaukraine issue will be key global factors this week. There are still uncertainties on the Russiaukraine issue while we will have an important Federal Open Market Committee (FOMC) meeting outcome on March 16.

“Amid all, crude oil prices and FIIS’ behaviour will be important triggers to drive the Indian market in a truncated week. On the domestic front, we will have our inflation numbers that will be announced on 14th March,” said Santosh Meena, head of Research, Swastika Investmart Ltd.

Equity markets would remain closed on Friday for Holi.

“This week is a holidayshortened one and participants will first react to IIP data on Monday. On the same day, CPI inflation and WPI inflation are also scheduled. Among the important events, the US Fed policy meet outcome will be closely watched,” Ajit Mishra, VP research, Religare Broking said.

Lastweek,thesensexjumped 1,216.49 points or 2.23 per cent, while the Nifty advanced 385.10 points or 2.37 per cent.

“With election results over, equity markets will move on to more important aspects in the near term. Russia-ukraine conflict, the Fed rate hikes, elevated oil prices and RBI’S response to rising inflationary pressure in the economy. We expect markets to stay volatile until the existing headwinds subside,” said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services Ltd.

Amid all, crude oil prices and FIIS’ behaviour will be important triggers to drive the Indian market in a truncated week Santosh Meena, head of research, Swastika Investmart Ltd