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Worsening tensions in the Middle East and foreign fund outflows were mainly responsible for the sharp fall in stock markets last week | (Photo: Shutterstock)
The Reserve Bank of India’s (RBI) decision on interest rates, Middle East conflict and trading activity of foreign investors are the key factors that will dictate investor sentiment in the market this week, said analysts.
Besides, quarterly TCS results, domestic macroeconomic data and developments in global benchmark Brent crude oil would also guide market trends.
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Worsening tensions in the Middle East and leaks of foreign funds were mainly responsible for the sharp fall in stock markets last week.
“On the domestic front, market focus will be on the RBI’s Monetary Policy Committee (MPC), which is scheduled to meet from October 7-9, 2024, with the results to be announced on Wednesday,” Pravesh Gour said , senior technical analyst. , said Swastika Investmart Ltd.
The second quarter earnings season kicks off with TCS, he said.
“At the national level, liquidity remains strong, with signs of sector rotation from overvalued segments to areas with more attractive valuations. Additionally, commodity prices, the US dollar index and key US macroeconomic data will play a crucial role in determining the direction of the market. also continue to be an important factor on the global stage,” added Gour.
Last week, the BSE Sensex fell 3,883.4 points, or 4.53 percent, and the Nifty fell 1,164.35 points, or 4.44 percent.
“Nifty50 and Sensex’s new milestones of 26,000 and 85,000 respectively were short-lived as headwinds from the Middle East and flow of FII funds to cheaper Asian peers impacted investor sentiment. Over the last week, these benchmark indices have corrected by over 4 per cent,” said Vinod Nair, head of research at Geojit Financial Services.
Market investors became poorer by Rs 16.26 lakh crore in five days of sharp correction in stocks.
“The market outlook will be guided by key domestic and global economic data such as India’s interest rate decision, industrial production, FOMC (Federal Open Market Committee) meeting minutes, first jobless claims and UK GDP data,” Palka Arora Chopra, director of Master Capital Services Ltd, said.
Investors will closely monitor the evolving geopolitical situation and its impact on crude prices, said Ajit Mishra, senior vice president of research at Religare Broking Ltd.
“Developments in foreign flows, as well as domestic flows, will also be crucial. On the domestic front, the focus will be on the outcome of the next MPC meeting on October 9,” Mishra added.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First publication: October 6, 2024 | 11:20 a.m. STI