Quarterly earnings, the US Fed interest rate decision, movement in crude oil and developments related to West Asia tensions will be the key divers for stock markets this week, analysts said.
Besides, Jio Platforms’ market debut, trading activity of foreign investors and global trends would also dictate investors’ sentiment, they added.
“Investors will track September industrial production and manufacturing output data on October 28. Corporate earnings will remain a key driver, with TVS Motor, Asian Paints, Trent, Sun Pharma, Bharat Electronics, Indian Oil, Bank of Baroda and GAIL India, among others, scheduled to announce their results,” Ajit Mishra, SVP – Research, Religare Broking, said.
The US Federal Reserve’s interest rate decision on Wednesday, October 28, will be the key global event, he said, adding that investors will closely examine the policy statement and accompanying commentary for signals on the future interest rate trajectory.
“Movements in US Treasury yields, crude oil prices, geopolitical developments and broader global risk appetite will also influence domestic market direction,” Mishra added.
“The US Federal Reserve’s October 27-28 meeting will be the principal global trigger. Markets largely expect rates to remain unchanged, making the policy guidance more important than the decision itself. A continued focus on inflation could push US yields and the dollar higher and keep foreign flows into emerging markets under pressure, while balanced guidance may support a temporary recovery in global equities,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
Domestically, industrial production data and quarterly earnings will determine whether India’s resilient growth outlook can counter the external pressure, he said.
Meanwhile, Jio Platforms shares are scheduled to debut on the stock exchanges on October 28 and will be a key sentiment trigger for the primary market.
“Crude oil remains a central concern. Prices at elevated levels amid escalating geopolitical tensions threaten to push up India’s energy import bill, complicate the inflation outlook and add pressure on the rupee and corporate margins.
The US Federal Reserve’s upcoming monetary policy meeting will be another key event for global markets. Investors will look for signals on the interest rate outlook, particularly as elevated US Treasury yields continue to influence the dollar and global risk appetite,” Ponmudi R, CEO – Enrich Money, an online trading and wealth tech firm, said.
In a holiday-shortened last week, the 30-share BSE Sensex tumbled 1,605.44 points, or 2.15 per cent, while the 50-share NSE Nifty slumped 546.15 points, or 2.36 per cent.
