Indian stock market is witnessing a highly volatile phase owing to multiple factors, from the muted second-quarter earnings to weak festive-led demand to geopolitical issues. Dalal Street saw a massive sell-off by FIIs as well and on 18 October 2024, the market touched a multi-week low too. For this week, the market is expected to remain consolidated with few stock-specific actions owing to Q2 results. Last week’s top-performing sector – Banking and Financial Services is expected to add some momentum to the market while geopolitical tensions, gold price movement, and the upcoming US election will also dictate the market sentiments on Dalal Street week ahead. Here are the top eight factors which you must check before making investment decisions this week.
- Q2 Earnings: Over 400 corporate houses/ companies will announce their September quarter results this week starting today. Some of the popular companies on the list include ITC, HUL, Coal India, Bharat Petroleum Corporation etc. This ongoing earnings season is playing a pivotal role in the market movement. The market sentiment is low or negative due to the muted Q2 earnings.
- Global Economic Data: This week, some of the crucial global economic data will be released which includes Consumer Confidence Flash (Oct), Consumer Inflation Expectations, and HCOB Manufacturing & Services PMI Flash from the Euro Area. From the US, the FED Beige Book will be released on Wednesday, and then on Thursday, Initial Jobless Claims, S&P Global Manufacturing, and Services PMI Flash will be released. The data for Durable goods orders for September will also be announced this week. Japan will also come up with its Jibun Bank Manufacturing & Services PMI Flash data this Thursday.
- Domestic Economic Data: On 23 October, the MPC meeting minutes will be released which was held on 9 October 2024. Apart from this, HSBC Manufacturing & Services PMI Flash will be released on 24 October. In September, Manufacturing PMI decreased to 56.5 from August’s 57.5, while Services PMI went down to 57.7 from 60.9 in August. In addition, foreign exchange reserves data for last week will also be announced this week on 25 October.
- Oil & commodities: The decline in the price of crude oil seems to be benefiting the domestic market in India, As India is a net oil importer, the lower the price of the oil, the better it is for the market. On the other hand, precious metals, especially gold have remained strong even though US elections are approaching. This can be attributed to the festive-led demand. The meeting of the IMF and World Bank today is a primary concern of the Commodity market this week in Dalal Street.
- India VIX: After prolonged volatility in the domestic market, the India VIX index or fear index finally declined 1.38% which is a good sign for the market again.
- IPOs: Initial public offerings are playing a crucial role in determining the stock market performance these days. Even this week, there are nine IPOs that will be launched in Dalal Street, and out of these nine, four are mainboard. The largest IPO this week is going to be the Rs. 4321 crore Waaree Energies IPO.
- FII Flows: FIIs have been net sellers throughout October, selling equity shares worth Rs. 80218 crore till last week. However, experts think that this sell-off is momentary, and eventually, FIIs will again turn to the Indian markets.
- Corporate Actions: Finally, corporate actions will influence stock-specific movement in the market. Many companies are coming up with their interim dividend this week such as JNK India, Gopal Snacks, Dalmia Bharat, LTIMindtree as well as L&T Technology Services ltd and more. Companies coming up with rights issue include Diligent Industries, Mercury Trade Links etc. On the other hand, Matrimonial.com is coming up with Buy back of shares.
Wrapping up
So, if you are trading or investing in the stock market this week, keep these points in mind, and evaluate them before making any investment investment decision. As Dalal Street is witnessing a volatile tile, it is crucial to evaluate every possible factor that can influence stock market movement.
Source: MoneyControl
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