The November 5 US presidential election, Federal Reserve interest rate decision, trading activity of foreign investors and upcoming quarterly earnings of domestic companies are the key triggers that would impact Indian stock market sentiment this week, analysts said.
The eventful week ahead would also see a host of macroeconomic data announcements and global trends driving the markets, experts said.
“The coming week is set to be eventful on a global level. The US presidential election on November 5 is a key focus, and the US FOMC (Federal Open Market Committee) meeting will be crucial. Geopolitical tensions and oil price movements will remain crucial. also variables,” says Santosh Meena, head of research, Swastika Investmart Ltd.
-
Also read: SEBI proposes minimum investment of ₹1 crore, mandatory demat form for securitized debt instruments
Domestically, the final leg of Q2 earnings will be crucial, while the behavior of foreign institutional investors (FII) will remain closely watched, Meena added.
“The market outlook will be determined by the US presidential election and key macroeconomic data such as HSBC India’s manufacturing PMI, services PMI, US Fed interest rate decision, global S&P composite PMI of the US, the US S&P global services PMI and the BoE (Bank of England) interest rate decision,” said Palka Arora Chopra, Managing Director of Master Capital Services Ltd.
Leading stock exchanges BSE and NSE held a special one-hour ‘Muhurat Trading’ session on the occasion of Diwali on November 1 to mark the start of the new Samvat 2081.
Last week, the BSE benchmark Sensex rose 321.83 points or 0.40 percent.
“This week, investors’ attention will be on developments in the US markets, especially the upcoming elections on November 5 and the Federal Reserve policy meeting,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
-
Also read: Mcap of 6 of 10 most valued companies rises by ₹1 lakh crore; State Bank, ICICI Bank top gainers
“On the domestic front, earnings reports from key companies, including Dr. Reddy’s, Titan, Tata Steel, M&M and Tata Motors take center stage. In addition, the release of key economic indicators such as the HSBC PMI for the manufacturing and services sectors will be in focus. provide insight into the economic momentum of the country,” Mishra said.
The relentless selling by financial institutions over the past month has largely contributed to the benchmark indices’ decline of more than 7 percent from their all-time highs.
“Global markets will react to the US presidential election for a few days after which fundamental factors such as US GDP growth, inflation and Fed rate cut will influence market movements,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services .
