Business & Investment

Federal Reserve Board of Governors, Second Quarter Earnings, IPOs Among the Key Factors That May Lead the Diwali Week Market

New Delhi: The domestic stock market ended this week with a sharp decline as traders profited in a variety of clues both domestically and globally, causing the benchmark index to fall by more than 2%.

Selling pressure increased in the middle of the week due to disappointing earnings from India, strong outflows from foreign investors and weak global clues. Banks and metals were one of the biggest losers on the front lines of the sector.

Agit Mishra, vice president of research at Religare Broking, said:

BSE Sensex Despite falling below the 60,000 mark on Friday, the Nifty50 managed to maintain the 17,650 level. However, despite the high sales, the wider market outperformed the benchmark index.

This week is a holiday-trimmed week and investors will be keenly interested in the auspicious opportunity for the Diwali festival ahead of the “Muflat Trading”. However, the domestic market will respond to various major events during the first week of November.

The main factors that can drive the market forward are:

The Federal Reserve Board of Governors will meet from November 2nd to 3rd. Starting on Tuesday, the conference will be an important event that hints at the expected bond taper and timing. Investors around the world will be eager to watch the commentary and catch up with clues from the central bank. This can affect risk sentiment.

Car sales number
Domestic car players will release data for October sales on November 1st. The semiconductor chip crisis and rising commodity prices are likely to affect the sales of car players. However, investors are enthusiastic about their support from the festive season. This sector is several months behind in the stock market.

Second quarter revenue
India Inc’s earnings season could continue to gain momentum in the first week of November. So far, domestic companies have reported mixed bags in terms of profits, which has failed to increase enthusiasm among traders.

Next week, HDFC, Tata Motors, IRCTC, State Bank of India, Relaxo Footwears, Bharti Airtel, Sun Pharma, Dabur India, Godrej Properties, Hindustan Petroleum, Jindal Steel & Power, Bata India and Pfizer will announce their second quarter results. increase.

Muflat trading
The stock exchange will carry out a regular one-hour special “muflat” transaction from 6:15 pm to 7:15 pm on November 4th in Diwali.

This year’s session commemorates the arrival of Sam Vat 2078, a Hindu year beginning in Diwali. “Muflat” transactions are believed to bring prosperity and wealth throughout the year.

FII flow
The main reason behind the recent stock market adjustments was the sharp selling and mass outflows from foreign investors. They posted a higher valuation profit following the downgrade of Indian stocks by a global brokerage firm.

Foreign investors pulled more than Rs 25,500 from the Indian stock market in October, stalling traders. Additional selling pressure from global investors could further shake market sentiment.

IPO spree
The festive mood on Daral Street gains momentum this week with very strong activity in the primary markets. From November 1st to November 3rd, three news stories will begin: PB Fintech, Sigachi Industries and SJS Enterprises.

Also, some ongoing issues (Nykaa’s parent company FSN E-commerce Ventures and Fino Payments Bank) will end on Monday and Tuesday, respectively. Although the number of trading sessions will be smaller, investors will have to subscribe to as many as five issues.

Covid-19 update
A new variant of the coronavirus is of concern worldwide as the latest mutation named AY4.2 is increasing in the UK and elsewhere in the world. However, so far, new variants are a rare phenomenon in India, but some cases have been reported in southern Indian states.

Technical outlook
Market width remained largely negative throughout the week, with many sectoral indices, including Bank Nifty, facing selling pressure. Nevertheless, Nifty Yessha Shah, head of equity research at SAMCO Securities, said in a previous trading session that he had bounced off 17,600 levels of minor support, but his current sentiment seems bearish.

“The next key support level is currently set at 17,250. Well below this level, price and time adjustments could be extended to days ahead. The market is currently at a critical level. So traders need to maintain a tight stop loss while in any position, “she added.

Federal Reserve Board of Governors, Second Quarter Earnings, IPOs Among the Key Factors That May Lead the Diwali Week Market Federal Reserve Board of Governors, Second Quarter Earnings, IPOs Among the Key Factors That May Lead the Diwali Week Market

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