Tariff-related impact, RBI interest rate decision to drive mkts: Analysts

New Delhi: In an eventful week ahead, stock markets may face volatile trends before the RBI’s interest rate decision and the US inflation data announcements, as investors continue to assess the broader implications of US tariffs on global economy and inflation, analysts said.

Investors fear that a full-blown trade war will impact global trade and economic growth, according to market experts.

Equity markets would remain closed on Thursday for “Shri Mahavir Jayanti”.

“This week is set to be volatile for global and Indian markets, as US President Donald Trump imposed tariffs worldwide, igniting fears of an all-out trade war and a global economic recession.

“The US inflation numbers will be released along with the FOMC (Federal Open Market Committee) minutes,” Puneet Singhania, Director at Master Trust Group, said.

Equity benchmarks slumped on Friday due to an across-the-board sell-off, tracking weak global markets amid growing global trade war fears.

Domestically, the RBI will decide on interest rates. India’s industrial and manufacturing production data is also set to be released this week,

he said.

US equity markets tanked nearly 6 per cent on Friday, closing the worst week for the stocks since 2020.

China’s Consumer Price Index (CPI) data for March is scheduled for release on Thursday, and the UK GDP data on Friday, Singhania added.

Last week, the BSE Sensex tanked 2,050.23 points, or 2.64 per cent, while the NSE Nifty declined 614.8 points, or 2.61 per cent.

Markets would keenly monitor trading activity of foreign investors, rupee-dollar trend and crude oil prices this week, experts said.