�Sensex & Nifty are likely to witness spurt in volatility amid investors brace for US Fed policy-meeting outcome which is scheduled in this week. FIIs selling pressure intensified in the previous week which caused sharp sell-off on Friday. However, FIIs/FPIs are still net buyer for the month of September (as of 18th September 2022) with net purchases of Rs. 120 billion. On macro-data front, domestic CPI came in higher than expected and IIP growth was reported at 2.4% as the low base effect started to normalise. WPI declined to 12.41% in August 2022 from 13.93% in July 2022.
This week will be dominated by interest rate decisions by the major central banks including the Federal Reserve, Bank of England, and Bank of Japan.
Equity Market Summary:
o Wallstreet indices closed lower on Friday as investors braced for Fed�s policy-meeting. US CPI was reported at higher than markets expectations which increased the most likely scenario of 75 bps rate hike.
o Retail sales in the US went up 0.3% in August from July, following a revised 0.4% fall in the previous month and beating forecasts of a flat reading.
o Industrial production in the US decreased 0.2% from a month earlier in August of 2022, missing market expectations of a 0.1%.
o European markets closed sharply lower in previous week following global cues.
o Industrial production in the Euro Area fell 2.3% MoM in July 2022.
o Annual inflation rate in the Euro Area was confirmed at a record of 9.1% in August 2022, compared to 8.9% in July 2022.
o Industrial production in Japan rose by 0.8% MoM in July 2022.
o Japan's trade deficit surged to JPY 2,817.3 billion in August 2022 from a JPY of 653.4 billion in the same month a year earlier.
