Investors focused on data releases, central bank meetings

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New Delhi: Investors are now closely focused on upcoming data releases and central bank meetings scheduled for the coming week, including decisions from the US Fed Reserve, BoE, and BoJ, says Vinod Nair, Head of Research at Geojit Financial Services.

Elevated crude oil prices and concerns about inflation initially cast a shadow over the market. However, this negative sentiment was offset by robust domestic industrial and manufacturing production data, as well as a decline in inflation, which propelled the market to new highs, he said.

The market also received support from a set of positive global cues. Some of the positive global cues include China’s recovery from deflation, cooling core inflation in the US, which supports the idea of a rate pause, and hints from the ECB about a potential pause in rates due to receding inflation.

However, mid and small-cap indices faced pressure as profit booking set in, driven by overvaluation concerns and after reaching all-time highs, he said.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said the US interest rate decision is due where Fed is expected to take a pause, which might bring relief to the global markets.

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