Fed interest rate decision, Q4 earnings, macroeconomic data to drive markets this week: Analysts

The US Federal Reserve's interest rate decision, quarterly earnings of corporates and domestic macroeconomic data will influence trading in the equity market in a holiday-shortened week ahead, analysts said. Foreign funds' trading activity, monthly automobile sales data and global trends would also guide market movement this week, they added. Markets would remain closed on Monday on account of 'Maharashtra Day'.

"The global picture is still muddled between more hikes and recession. All eyes are on the Federal Open Market Committee (FOMC) statement, which will be announced on May 3, while the ECB will announce its interest rate decision on May 4. Macroeconomic numbers will keep the market mood subdued in the near term.

"Aside from that, the Indian equity markets are constantly receiving funding from FIIs, and Friday's record buying of Rs 3,304 crore in the cash market showed their confidence in the Indian market," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

In the domestic market, Q4 earnings and auto sales numbers will drive the movement this week. Tata Steel, Titan, Hero MotoCorp and HDFC Ltd are the few Nifty 50 companies that will declare their financial results this week, Gour added.

Among other earnings to be declared this week are from Adani Green Energy, Ambuja Cements, Tata Steel, UCO Bank, Adani Enterprises, Bharat Forge and Federal Bank.

"In the domestic market, the release of PMI numbers and quarterly earnings will sway investor sentiment in the upcoming sessions, along with the Fed policy announcement," said Vinod Nair, Head of Research at Geojit Financial services.

Purchasing Managers' Index (PMI) data for manufacturing and services sector will influence trading in the market.

"While the markets may have run up sharply over the past few sessions due to revival in FII buying interest, relatively better corporate earnings performance so far, and falling crude oil prices, caution may prevail going ahead and profit-taking could come into play," Amol Athawale, Technical Analyst (DVP), Kotak Securities Ltd, said.

Last week, the BSE benchmark jumped 1,457.38 points or 2.44 per cent.