Terror Attacks In Paris To Impact Markets Week Ahead

15 November,New Delhi

The Indian equities markets are likely to react in a negative manner like their global peers following the serial terror attacks in Paris which killed more than 160 people and injured several others.

The terror attacks in Paris on Friday evening are likely to have worldwide ramifications as it has fueled speculation of large scale combined offensive of the developed economics against militant organisation ISIS which is believed to be behind the attack.

The indices may remain volatile in the near term amid lack of any major triggers for the markets. The macroeconomic data, trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses in the coming week.

Shares of public sector oil marketing companies (PSU OMCs) will tomorrow react to a regular fuel price review due during the middle of the month. PSU OMCs review fuel prices twice a month based on the trend in international oil market and currency movement.

Investors will closely track macroeconomic data from the US for cues whether Federal Reserve will raise interest rate in December. Investors in emerging markets, including India, are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets.