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A host of domestic, global trends and trading activity of foreign investors will be the major driving factors for market this week
Stock Market Update Next Week
A host of macroeconomic data announcements, the last batch of September quarter earnings, global trends, and trading activity of foreign investors will be the major driving factors for the equity market this week, according to analysts.
“India is set to release CPI and IIP data on November 12, with WPI data expected on November 14. Globally, the US inflation report on November 13 will be critical, as it may influence the Federal Reserve’s upcoming policy stance,” Santosh Meena, Head of Research, Swastika Investmart Ltd, said.
With major global events and Q2 earnings (of blue-chip companies) behind, the market focus will shift to key macroeconomic data and the last round of results, Meena said.
Bank of India, BEML, Hindalco Industries, ONGC, Apollo Tyres, and Brainbees Solutions — the parent firm of online e-commerce platform FirstCry — among others will announce their quarterly earnings this week.
“The performance of US bond yields and the dollar index will be pivotal for emerging markets like India, as both have surged since the US election outcome. Given this backdrop, FIIs (Foreign Institutional Investors) activity will remain a crucial driver for the Indian equity market in the near term,” Meena added.
Movement in global oil benchmark Brent crude and the rupee-dollar trend would also guide markets this week, analysts said.
“The outlook for the market will be guided by the major domestic and global economic data such as India’s CPI, industrial production, manufacturing output, WPI inflation, US CPI, core CPI, initial jobless claims, UK GDP and China industrial production data,” Palka Arora Chopra, Director of Master Capital Services Ltd, said.
Last week, the BSE benchmark declined 237.8 points, or 0.29 per cent, and the Nifty went lower by 156.15 points, or 0.64 per cent.
“The weakness in the Indian market can be attributed largely to the relentless selling by FIIs which continue this month, too,” V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, “Markets are expected to remain sideways on the back of mixed global factors and subdued quarterly results. However, there could be stock-specific action on account of the last leg of Q2 earnings to be announced this week.”
FPI Trend
The exodus of foreign investments from Indian equity markets continued unabated, with FPIs pulling out nearly Rs 20,000 crore in the last five trading sessions on higher valuations of domestic stocks and shifting their allocation to China.
As a result, foreign portfolio investors (FPIs) have turned net sellers in the equity market, with total outflows reaching Rs 13,401 crore for 2024 so far.
MCap Erodes
The combined market valuation of six of the top 10 most-valued firms eroded Rs 1,55,721.12 crore last week.
Stock Market Holiday On November 15
Equity markets will remain closed on Friday for Guru Nanak Jayanti.
(With PTI inputs)