Domestic equity markets are set to experience various influences in the upcoming week, including quarterly earnings, global trends, and the movement of crude oil prices, according to analysts. Additionally, investors will closely monitor the ongoing Hamas-Israel conflict in the Middle East as well as the trading activity of foreign investors. Markets will be closed on Tuesday for the Dussehra holiday.
“The global markets are currently uncertain due to factors such as the rising US bond yield, global economic uncertainty, and geopolitical tensions. These factors will be closely observed as they have the potential to impact market sentiment,” stated Pravesh Gour, a Senior Technical Analyst at Swastika Investmart Ltd. Gour also highlighted the importance of tracking the rupee against the dollar, crude oil prices, and investments from foreign institutional investors (FIIs) and domestic institutional investors (DIIs) during the results season.
Furthermore, the month-end derivatives expiry on Thursday may lead to volatile trends in the markets. Ajit Mishra, SVP – Technical Research at Religare Broking Ltd, noted that the shortened holiday week, combined with the ongoing earnings season and the expiration of October month derivatives contracts, could contribute to significant market volatility.
Investors will also pay attention to the Israel-Palestine conflict and the earnings reports of major Indian companies. Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd, emphasized the significance of global and domestic events, including the UK services PMI, US manufacturing and services PMI, US GDP, initial jobless claims, and crude oil inventories, in shaping market trends.
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd, expects global markets, including India, to respond to geopolitical challenges, oil prices, and bond yield fluctuations. The focus will be on quarterly results and individual stock performance.
Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd, anticipates a pick-up in the pace of the earnings season during this shortened week. Khemka also highlighted the significance of the European Central Bank’s interest rate decision.
Several major companies are set to announce their financial results for the September quarter, including Axis Bank, Tech Mahindra, Maruti Suzuki, Bajaj Finserv, Canara Bank, Asian Paints, PNB, BPCL, and Reliance Industries.
In the previous week, the BSE benchmark experienced a decline of 885.12 points or 1.33%, while the Nifty witnessed a decline of 208.4 points or 1.05%.
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