The decision on the interest rates of the Reserve Bank of India will mainly decide the direction of the local stock markets this week.

Analysts have expressed this opinion.

He says that apart from this, global trends and activities of foreign funds will also give direction to the market.

Market investors will also keep an eye on the results of state assembly elections during the week.

Swastika Investmart Ltd.

Santosh Meena, head of research, said, "The market will remain volatile due to global cues, however, market participants will be watching domestic indicators such as the outcome of the Monetary Policy Committee (MPC) meeting of the Reserve Bank and the results of Gujarat and Himachal Pradesh." It will also depend on the results of the assembly elections.

The results of the assembly elections will come on December 8.” Meena said that on the global front, bond yields in the US and the dollar index have declined and the market will also watch this further.

On the macro-economic front, the Purchasing Managers' Index (PMI) data for the services sector will come on Monday.

"Investors are eagerly awaiting the results of the assembly elections," said Siddharth Khemka, head of retail research at Motilal Oswal Financial Services. The 30-share BSE Sensex gained 574.86 points, or 0.92 per cent, in the past week.

Apoorva Seth, head of market outlook at SAMCO Securities, believes that the biggest development for the stock markets this week is the Reserve Bank's monetary review.

Kotak Securities Ltd.

Amol Athawale, Deputy Vice President - Technical Research, said that the two key developments ahead for the market are the Reserve Bank's monetary review and the Federal Reserve meeting to be held in mid-December.

These will decide how the 'mood' of the investors is going to be in the near future.

Along with this, the movement of Brent crude oil and rupee will also be important for the direction of the market, he added.

Vinod Nair, Head of Research, Geojit Financial Services, said that the direction of the market will be decided by the outcome of the Reserve Bank's monetary meeting.

Nair said that due to high valuations, Federal Reserve meeting and Kovid curbs in China, there will be a lot of volatility in the market in the coming weeks.

Deepak Jasani, Head of Retail Research, HDFC Securities, said that the outcome of the Reserve Bank's monetary review meeting on December 7 will show how the trend of interest rates in the country is going to be going forward.

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