Stock Market Outlook: US Fed Policy, BRICS Summit, Inflation, And Truncated Week To Drive Nifty, Sensex - Outlook Money

• Market expectations for a Federal Reserve interest rate hike on September 16 shifted toward a base case following new inflation data. • August core CPI rose 0.3% month-over-month, pushing CME odds of a 25 basis point hike from 59.4% a week ago to 86.5% after the release.

• U.S. inflation remained at 3.4% in August, increasing pressure on the Federal Reserve to raise interest rates. • The Federal Open Market Committee will meet next week to decide on a rate hike following a surge in fuel prices caused by the war in Iran.

• U.S. stock indices declined this week as markets reacted to Oracle's earnings report and rising inflation data. • The Dow Jones Industrial Average fell 1.6% to 52,573, while the Russell 2000 dropped 2.4% to 2,904.

• Private equity firms, family offices, and institutional investors have rapidly increased their acquisitions and investments in the dermatology market over the last decade. • Financial sponsors typically establish a platform investment in an existing dermatology group to serve as a strategic buyer for further add-on acquisitions.

• European Central Bank President Christine Lagarde rejected a proposal by Jean-Luc Mélenchon to cancel a portion of France's public debt. • Lagarde described the plan as a waste of time and stated it does not make sense legally, technically, or financially.

• Britain's GDP grew 0.4% in July as AI-focused services increased overall economic output. • Bloomberg Economics reports that these figures likely will not change the Bank of England's decision during next week's meeting.

• India's foreign exchange reserves rose by a record $44.903 billion during the week ending September 4. • Data released by the Reserve Bank of India on Friday shows the total reserves reached a lifetime high of $785.706 billion.

• Euro zone government bond prices faced their worst weekly performance since the start of the year, though they recovered modestly on Friday. • Two-year Italian bonds were the worst performers among G7 nations this week, with yields rising by 26.4 basis points.

• GIFT Nifty is trading around 23,345, suggesting the Indian stock market will open nearly 120 points lower. • Brent crude oil prices have risen above $108 per barrel, while WTI crude has crossed $102.

• Citi issued a bullish outlook on the European defense sector and identified a top stock pick. • The bank estimates the selected company has a potential upside of 60%.

• The consumer price index showed persistent inflation in August, providing the final major data point before the Federal Reserve's policy meeting next week. • Dow Jones consensus expectations projected a 0.4% rise in the all-items index and a 0.2% gain for core inflation, which excludes volatile food and energy costs.