The decision on the interest rate of the Reserve Bank of India (RBI), the conflict in West Asia, and the activities of foreign portfolio investors (FPI) will determine the direction of the local stock markets this week. Analysts have expressed this opinion. Apart from this, the quarterly results of the information technology giant Tata Consultancy Services (TCS), domestic macroeconomic data, and Brent crude oil prices will also give direction to the market. Last week, the stock market fell sharply due to increasing tensions in West Asia and the withdrawal of foreign funds.

MPC meeting will be held

Pravesh Gaur, Senior Technical Analyst, Swastika Investment Limited, said, "On the domestic front, all eyes will be on the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India. The MPC meeting will begin on October 7. The results of the three-day meeting will be announced on Wednesday, October 9." He said that the second quarter results session of companies is starting with TCS. He said that the liquidity situation remains strong on the domestic front. In such a situation, cash flow from high-valuation sectors can be towards sectors with attractive valuations. Gaur said that apart from this, commodity prices, the US dollar index, and important macro data of America will also be important for the market.

There was a big drop last week.

Last week, the 30-share BSE Sensex fell 3,883.4 points or 4.53 percent. At the same time, the National Stock Exchange's Nifty lost 1,164.35 points or 4.44 percent. Vinod Nair, Head of Research, at Geojit Financial Services, said, "New milestones of 26,000 and 85,000 points were short-lived for both Nifty and Sensex, as the market was affected by the shocks caused by West Asia and foreign funds turning to some low-valuation Asian markets. This led to a decline of more than four percent in the market. "

Investors lost Rs 16.26 lakh crore.

Amid a sharp decline in the stock market, investors' capital declined by Rs 16.26 lakh crore in five days. Palka Arora Chopra, Director, Master Capital Services Limited, said, "The market trend will depend on key domestic and global economic data. RBI's decision on interest rates is to come during the week. Apart from this, industrial production figures will also come. Along with this, details of the Federal Open Market Committee (FOMC) meeting in the US, unemployment figures, and US GDP figures are also to come." Religare Broking Limited Senior Vice President (Research) Ajit Mishra said that investors will keep an eye on geopolitical developments and their impact on crude oil prices. Mishra said, "Apart from the flow of foreign funds, domestic flow will also be important for the market. On the domestic front, all eyes are on the MPC meeting. The results of this meeting will be announced on October 9."