Monetary policy, fund flows to define equity makets’ course

Mumbai: The upcoming monetary policy review coupled with the ongoing financial results season and key macro-economic data points will influence the trajectory of key equity indices in the week ahead, analysts opined.

According to market observers, direction of foreign fund flows, rupee's movement against the US dollar as well as global crude oil prices will also affect investors sentiments.

"The next week is dominated by macro data and RBI monetary policy meeting," Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.

"On the RBI policy, the markets are divided on policy rate hike in the next weeks’ meeting. The decision weightage given by MPC to core inflation is crucial and whether RBI changes its stance from neutral to hawkish. RBI is likely to be data dependent and cautious on hikes."

Besides the monetary policy review slated for July 31-August 1, investors will look out for macro-economic data points such as the eight core industries' (ECI) output and the country's fiscal deficit numbers.

In addition, the PMI manufacturing and services' figures, along with monthly automobile sales data will be released during the week.