RBI policy meet, macroeconomic data to set market sentiment this week

Outcome of the Reserve Bank of India's (RBI) policy meeting on Tuesday and macroeconomic data would set the trading sentiment in the stock market this week, say experts.

"Expectation of rate-cut and development on the geopolitical front will dominate trading sentiments this week. The major domestic event this week is the RBI monetary policy meeting scheduled on Tuesday," said Vijay Singhania, Founder Director, Trade Smart Online. Interest rate sensitive sectors will remain in focus ahead of RBI's monetary policy meeting, he added.

Auto stocks will be under the spotlight amid monthly sales data announcement. Markets would keenly monitor the outcome of the meeting of the newly-constituted Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel on Tuesday.

"The street is waiting in the near-term for policy directives which will probably be the trigger for short-term moves in the market," said Jimeet Modi, CEO, SAMCO Securities. Moreover, on macroeconomic front, PMI data on manufacturing and services sector would also influence trading. "With US jobs data and RBI monetary policy scheduled for this week, investors' focus is expected to back into macros soon," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

On the global front, the US non farm payrolls report for September would come on Friday. Over the past week, the BSE benchmark Sensex ended at 27,865.96, a heavy loss of 802.26 points or 2.80%.