Market Ahead Podcast, Aug 27: Top factors that could guide markets today

Market participants wait with bated breath as US Federal Reserve chairman Jerome Powell is set to address the Jackson Hole Symposium later today.

Given that his address comes a day after South Korea increased interest rates, for the first time in three years, investors would want to know if the central bank of the world's biggest economy feels the same way.

The Bank of Korea, yesterday, became the first advanced Asian economy to raise interest rates after the pandemic, citing worries about asset bubbles and other financial imbalances.

It went on to say that monetary policy accommodation will continue even as uncertainties over Covid-19 continue to prevail. Analysts tracking the Asian country now believe the next increase will come in November, with the tightening cycle continuing well into 2022.

However, should investors on D-Street worry about policy tightening back home?

Let's go to Gaurav Dua, SVP - Head, Capital Market Strategy at Sharekhan by BNP Paribas to understand if the move's ripple effects would be felt in India.

Well, with advanced economies beginning to contemplate interest rate hikes, it would be important to see how emerging markets like India react to the developments.

In this regard, global trends will dictate D-Street's movement today. Apart from that, stock-specific triggers, news flow around Covid-19 and vaccination, and foreign fund flow will sway the markets.

Yesterday, markets ended flat amid the F&O expiry of the August series. The BSE Sensex closed at 55,949 levels, up 5 points while the Nifty50 ended at 16,637, up 2 points. Both the indices have advanced 6 per cent and 5 per cent, respectively during the derivatives series.