The Indian equity market which continued its gaining rally during the week is likely to continue to trade in the positive zone.
Week ahead, markets will react to WPI inflation on Tuesday.
Further hikes may be warranted in the coming months as the central bank tries to get inflation back below target of six per cent.
On global front, the decision of US Federal Bank Data will dictate the market trend.
Two reports showed US inflation is slowing and that has tilted the scales for traders in pricing in a slightly less aggressive Fed in September.
The other important data set for the week is the July retail sales report which should show the consumer is weakening.
Traders will also look to see if jobless claims continue to trend higher and if the labour market is showing any signs of becoming less tight.
Wall Street will now look for some guidance hints from the release of the FOMC minutes. The Fed has signalled that guidance wouldn’t be transparent going forward.
It might take another cooler-than-expected inflation report before the Fed can admit that they are ready to consider slowing down hikes.
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