Market Sentiment Next Week Hinges on Q2 Earnings, Key Economic Data, and FII Flows
By [Your Name], News Writer, Alayaran.com
Mumbai, November 10, 2024 - The Indian equity markets are poised for a volatile week ahead, with key macroeconomic data releases, the final batch of September quarter earnings, and the activity of foreign investors expected to dictate market trends.
Analysts highlight that domestic and international economic indicators will be crucial. India is set to release its Consumer Price Index (CPI) and Index of Industrial Production (IIP) data on November 12, followed by the Wholesale Price Index (WPI) on November 14. On the global front, the US inflation report on November 13 could influence the Federal Reserve's policy decisions, impacting markets worldwide.
Santosh Meena, Head of Research at Swastika Investmart Ltd, remarked, "With major global events and Q2 earnings of blue-chip companies behind us, the market's focus will now shift towards these key economic data points and the last round of quarterly results."
Companies such as Bank of India, BEML, Hindalco Industries, ONGC, Apollo Tyres, and Brainbees Solutions, the parent company of online platform FirstCry, are among those scheduled to announce their earnings this week.
The movement in US bond yields, the dollar index, and the trend in Brent crude oil prices, along with the rupee-dollar exchange rate, will also guide market directions. Palka Arora Chopra, Director at Master Capital Services Ltd, noted, "The outlook for the market will be shaped by both domestic and global economic data, including US CPI, core CPI, initial jobless claims, UK GDP, and China's industrial production data."
Last week saw a decline in the BSE benchmark by 237.8 points or 0.29 percent, and the Nifty decreased by 156.15 points or 0.64 percent. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributed this weakness to continuous selling by Foreign Institutional Investors (FIIs), a trend expected to persist.
Siddhartha Khemka from Motilal Oswal Financial Services Ltd anticipates the market to remain sideways due to mixed global factors and lackluster quarterly results, though stock-specific movements are expected due to the concluding earnings announcements.
The trend of foreign portfolio investors (FPIs) pulling out investments from the Indian equity markets continues, with outflows amounting to nearly Rs 20,000 crore over the last five trading sessions, influenced by higher valuations of domestic stocks and a shift in allocation towards China. This has led to FPIs becoming net sellers in the equity market, with total outflows reaching Rs 13,401 crore for the year so far.
Additionally, the combined market valuation of six of the top 10 most-valued firms eroded by Rs 1,55,721.12 crore last week.
Investors should note that equity markets will be closed on Friday, November 15, for Guru Nanak Jayanti.
With inputs from PTI