New Delhi, Sep 4 (PTI) In the absence of major domestic events, equity markets will be driven by global trends, foreign fund flows and movement in the Brent crude oil, analysts said.

The major global events this week are the European Central Bank interest rate decision and China's inflation rate, they added.

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"Indian equity markets are outperforming most of their global peers and trying to show resilience despite weak global cues. There is not much on the domestic front to digest therefore the direction of global markets will play an important role in the direction of our market," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

On the global front, European Central Bank will announce its interest rate decision on 8th September 2022, Meena added.

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Besides, PMI (Purchasing Managers' Index) data for the services sector for August which is scheduled to come on Monday, will also influence trading.

"In absence of any major event, participants will be eyeing global markets for cues. Besides, the trend of foreign flows will be on their radar," Ajit Mishra, VP Research, Religare Broking Ltd, said.

During the holiday-shortened last week marked with volatility, the Sensex dipped 30.54 points or 0.05 per cent, while the Nifty lost 19.45 points or 0.11 per cent.

"Given the absence of major domestic events, Indian market sentiment will be influenced by its global counterparts to determine its movement. Investors around the world will be keeping a close eye on China's inflation figures. Other important factors that may influence the market include volatility of oil prices and the USD INR," said Apurva Sheth, Head of Market Perspectives, Samco Securities.

There have been concerns in the market over global growth and rate tightening by central banks.

Geojit Financial Services, Head of Research, Vinod Nair, said, domestic indices struggled for direction during the last week following the Jackson Hole symposium, where the Fed chair pointed towards a stricter rate hike, contrary to market expectations.

This increased concerns about an economic slowdown, which has caused a significant sell-off in the US markets and spillover effects on markets around the world.

Nair added that on the other hand, the ongoing support from foreign investors aided domestic bourses to remain resilient.

Hemant Kanawala, Senior Executive Vice President & Head – Equity, Kotak Mahindra Life Insurance Company said, amid global discussion on growth - inflation trade-off, the Indian economy continues to be in a relatively strong position, especially among the emerging market basket.

"Given the strength in the domestic economy we remain positive on equities from a long-term point of view," Kanawala added.

The BSE Sensex has gained nearly 1 per cent so far this year.

The year 2022 has been almost a volatile year for the whole world wherein India in the first half reacted the same as global markets but in the last one month India is outperforming the world markets, said Prashanth Tapse (Research Analyst), Sr VP Research, Mehta Equities Ltd.

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