Market Outlook this week: The direction of local stock markets will be decided by the activities of foreign investors, global trends and second quarter results of companies during this week of short trading session. Expressing this opinion, analysts have said that due to the settlement of monthly derivatives contracts, some further decline may be seen in the market. Stock markets will remain closed on Friday on the occasion of Diwali, but there will be special Muhurta trading for one hour in the evening. Major stock exchanges BSE and NSE will conduct a special one-hour ‘Muhurat Trading’ on the occasion of Diwali on November 1. Beginning of new Samvat 2081 Is a symbol of.
These figures are coming this week
Important data such as America’s employment data, GDP data, China’s PMI manufacturing data will be important indicators for the market. America’s main PCE price index will be released on October 31, on the basis of which the US central bank assesses inflation. Apart from this, Bank of Japan is also going to announce its decision on interest rate on 31st October. This week Adani Power, BHEL, Adani Enterprises, Adani Ports and Dabur India will announce their quarterly results.
There was a big fall in the market last week due to huge withdrawal of foreign funds and poor second quarter results of the companies. An expert said that the market may continue its weak trend in the near term due to investors being cautious ahead of the US presidential elections early next month.
Also read: FPI Out Flow: Withdrawal of foreign investors from Indian shares continues, shares worth record 85790 crores sold so far in October.
What do experts say
Vinod Nair, head of research at Geojit Financial Services, said, “We expect the market to continue to fall in the short term. The change in this stance will depend on the pace of FII selling slowing down and the results of the US presidential elections. He said that the FPI sell-off that started in the beginning of October is continuing and there is no sign of reversal of this trend yet. FPI selling has started after China announced incentive measures. Apart from this, the valuation of Chinese shares is also low. FPIs remain sellers due to high valuation of shares in India. Vijayakumar further said that the market sentiment has been affected by the selling of FPIs and Nifty has come down by 8 percent from its highest level.
Swastika Investmart Ltd. Santosh Meena, head of research, said that going forward, FII inflows will play an important role in determining the direction of the market, while the market is expected to remain volatile due to the futures and options settlement in October. Right now the second quarter results session is going on. In such a situation, the upcoming quarterly results will play an important role in giving direction to the market.He said that the geo-political situation on the global front, especially the Iran-Israel war and its impact on crude oil prices, will be important for the market direction. Meena said that before the US presidential elections, markets around the world can adopt a cautious and wait attitude.
Also read: Home Loan Festive Offers: Taking loan to buy a house on Diwali, keep these things in mind while applying
Siddharth Khemka, Head-Research, Wealth Management, Motilal Oswal Financial Services Limited, said that due to weak global cues, weaker than expected second quarter results, overall Nifty has fallen 8 percent from its highest level of 26,277 points. Due to the presidential elections to be held in America on November 5, this trend of weakness in the market is going to continue. Last week, the 30-share BSE Sensex fell 1,822.46 points or 2.24 per cent, while the Nifty lost 673.25 points or 2.70 per cent.
