Factors that will guide the markets this week

The US Fed interest rate decision, inflation data and FIIs are the key factors that are expected to drive stock markets this week,  analysts said.

Global trends will also be tracked by investors for further cues, they added.

"The Indian stock market's future trajectory will be influenced by a blend of global and domestic factors.

"Global trends, particularly the performance of US markets and the Fed's monetary policy decision, will play a significant role.

"Additionally, domestic economic indicators like inflation, will shape the market sentiment," Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said.

The flow of foreign and domestic institutional investments will also be a key driver, he said.

Gour further said the rupee's exchange rate and crude oil prices will be critical determinants of market direction.

From the domestic macroeconomic data announcement, WPI inflation will be in focus on Monday.

"The key focus will be on the US Federal Reserve meeting, where a 25 basis point rate cut is already factored in. The Fed's commentary on future rate policy will hold significant importance," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.