Security personnel stand guard outside the Reserve Bank of India (RBI) headquarters in Mumbai, India. (Photographer: Kainaz Amaria/Bloomberg)

RBI’s Rate Decision, Macro Data, Global Cues To Set Stock Market Trend

The Reserve Bank of India's interest rate decision, macroeconomic data, global cues and movement of the rupee will set the stock market trend this week, say experts.

Purchasing Managers' Index data for the manufacturing and services sectors are due this week which would influence trading sentiment in the market, they said.

Equities may also react to the GDP numbers released post market hours on Friday.

India's economic growth slowed to 7.1 percent in the September quarter after peaking to an over two-year high in the first three months of this fiscal, as consumption demand moderated and farm sector displayed signs of weakness.

The Monetary Policy Committee will hold the fifth bi-monthly monetary policy meeting for 2018-19 during Dec. 3-5.

Experts said the Reserve Bank is likely to maintain status-quo on interest rate despite moderation in economic growth and easing inflation.

Also, the announcement of sales data by auto companies may see stock-specific movement.

"Investors will look forward on the outcome of U.S.-China meet during the G-20 summit and upcoming Organisation of the Petroleum Exporting Countries meet to get cues on production cut," said Vinod Nair, Head of Research, Geojit Financial Services.

State elections' outcome looms as a key uncertainty heading into this month, another analyst said.

Trading in Brent crude, the international benchmark, will also be monitored for further cues.

Also read: Weekly Wrap: Sensex, Nifty Resume Rally On Strengthening Rupee