Mumbai (Maharashtra) [India], September 21 (ANI): Market participants in the Indian stock market will be closely eying a host of key global and domestic developments in the coming week, which could drive short-term sentiment and sectoral movements, according to the market experts.

Market analysts said that traders are bracing for a week of heightened volatility, which is influenced by geopolitical policy shifts in the United States and key economic data releases in India.

Ajit Mishra - SVP, Research, Religare Broking Ltd. said, 'In the coming week, markets will first react to the US President's executive order imposing an annual fee of USD 100,000 on H-1B visas, announced late Friday.'

'While export-driven sectors are already grappling with tariff-related pressures, this move could further weigh on IT services exporters at a sensitive time when trade negotiations remain underway,' Mishra added.

According to Mishra on the data front, HSBC's Composite, Manufacturing, and Services PMI flash estimates for September are scheduled for release on September 23, followed by banking data on loan and deposit growth, as well as foreign exchange reserves, on September 26.

'Globally, investors will be closely monitoring the performance of US markets in the aftermath of the Fed's rate cut,' he added.

Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities said, 'Looking ahead, based on the current chart structure, the index is likely to enter a brief consolidation phase over the next few trading sessions. This pause could help the index stabilize and build a stronger base before attempting another upward move.'

On Friday, the Indian equities ended higher for the third consecutive week, supported by favorable cues from both domestic and global fronts.

After a muted start, the benchmark indices inched higher through most of the week; however, profit-taking in the final session trimmed some gains.

Eventually, the Nifty and Sensex closed with gains of nearly a percent each, settling at 25,327.05 and 82,626.23, respectively.

Renewed optimism around the resumption of India-US trade talks, coupled with the US Federal Reserve's first rate cut of 2025, bolstered sentiment. The continued rub-off effect of recently announced GST reforms on consumption further supported the positive tone.

Additionally, Crisil's projection of softer inflation at 3.2 per cent for FY26 strengthened expectations of further policy easing by the RBI later this year. However, a mixed trend in FII flows capped the overall momentum.

Most sectors traded in line with the broader market trend and closed higher. Realty, energy, and pharma were among the top performers, while FMCG remained subdued, ending marginally lower. The broader indices, especially smallcaps, delivered a strong catch-up rally, highlighting the improvement in risk appetite toward mid- and small-sized stocks. (ANI)