Mumbai: The signals from the foreign market will decide the movement of the domestic stock market this week, especially the market will keep an eye on the progress towards resolving trade issues between the US and China. At the same time, the trend towards investment of foreign portfolio investors and domestic institutional investors will also give direction to the market. Apart from this, the direction of the market will also be determined by the price of crude oil in international market and the movement of rupee against dollar. In the international market, the price of crude oil had gone to a high of nearly two months last week. Due to the rise in the price of crude oil, the rupee may be weak, which will be seen on the stock market. At the end of last week, there was an improvement in the home currency.
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The winter session of Parliament starts on Monday. During this time, investors will also keep an eye on political developments.
Due to the confrontation between the US and China on business issues, there is a world of recession. Therefore, the progress towards resolving the conflict between the two big trading partners of the world will create a positive environment in the market.
At the same time, the details of the meeting of the US central bank Federal Reserve's Open Market Committee (FOMC) last month are going to be released on Thursday this week. The Fed had cut interest rates in the range of 1.5–1.75 per cent last month.
Apart from this, some major economic data released this week abroad can also have an impact on the market.
In the US, the figures for the US market manufacturing ring and service PMI will also be released on Friday at the end of this week. Earlier in Japan, the balance of trade data will be released on Wednesday and the consumer confidence data of the European Union will be released on Thursday.