companies Financial results, attitude of foreign investors and inflation data will decide the direction of the stock market this week. Apart from this, the market will also keep an eye on the fluctuations in crude oil prices amid the ongoing global crisis. Analysts said this. Religare Broking Ltd. Ajit Mishra, Senior Vice President (Research), said, “The direction of the market in the coming week will largely depend on the financial results of the companies. During this period, major companies like Reliance Industries, Infosys, HDFC Bank, Axis Bank and HCL Technologies are going to release their results.
Inflation figures will be monitored
On the macroeconomic front, investors will keep an eye on the CPI (consumer price index based inflation) and WPI (wholesale price index based) inflation data for September to be released on Monday. Investors will also keep a close eye on the ongoing global tensions, especially crude oil prices and the trend of foreign funds. Mishra said that key domestic economic data including CPI and WPI inflation are also going to be released this week.
3 IPOs will come this week
Last week, BSE Sensex fell 307.09 points or 0.37 percent and closed at 81,381.36. On the other hand, NSE Nifty fell 50.35 points or 0.20 percent and closed at 24,964.25. Last week started with a decline due to persistent selling pressure from foreign investors, but helped limit losses in later sessions, he said. Three initial public offerings (IPOs) will also open in the market this week. Two of these are from the SME segment. Hyundai Motor India’s IPO will open on Tuesday and close on Thursday. There is a plan to raise Rs 27,870 crore from this IPO.
FIIs become sellers
Vinod Nair, head of research at Geojit Financial Services, said, “Foreign institutional investors (FIIs) are turning to China markets due to stimulus measures and low valuations. RBI’s policy remained neutral as the change in stance does not indicate the possibility of a rate cut in the near future.” Foreign investors became net sellers in October and sold Rs 58,711 crore so far this month. The escalating conflict between Israel and Iran, sharp rise in crude oil prices and strong performance of the Chinese market led to selling by FIIs in Indian markets. Nair said that due to this trend the stock market is expected to be affected in the short term. Siddharth Khemka, head of research, Motilal Oswal Financial Services Limited, said India, China and Britain will release their inflation data this week. He said that apart from this, international factors like European Central Bank (ECB) interest rate decisions, China’s GDP and US retail sales can also affect the market.
