NEW DELHI: This week, investors’ sentiments would hugely be impacted by the RBI’s interest rate decision, Middle East conflict and trading activity of foreign investors, according to analysts.
Furthermore, market trends would also be influenced by quarterly earnings from IT bellwether TCS, domestic macroeconomic data and global oil movements.
Last week’s market fall was the result of worsening Middle East tensions and withdrawn foreign funds.
Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said, “On the domestic front, the market’s focus will be on the RBI Monetary Policy Committee (MPC), which is scheduled to meet from October 7 to 9, 2024, with the outcome to be announced on Wednesday.”
The second quarter earnings season is kicking off with TCS, he added.
“Domestically, liquidity remains strong, with signs of sectoral 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 market direction. Geopolitical developments will also continue to be a significant factor on the global front,” Gour stated.
Last week, the BSE Sensex plunged by 3,883.4 points, or 4.53 per cent, while the Nifty dropped 1,164.35 points, or 4.44 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The new milestones of both Nifty50 and Sensex of 26,000 and 85,000, respectively were short-lived as the headwinds from the Middle East and flow of FII funds to cheaper Asian peers impacted the investor sentiment. During the last week, these benchmark indices corrected by more than 4 per cent.”
In the past 5 days of heavy equity correction, market investors lost their wealth by Rs 16.26 lakh crore.
“The outlook for the market will be guided by major domestic and global economic data such as India’s interest rate decision, industrial production, US FOMC (Federal Open Market Committee) meeting minutes, initial jobless claims and the UK GDP data,” Palka Arora Chopra, Director, Master Capital Services Ltd, said.
Ajit Mishra, SVP Research, Religare Broking Ltd. said that investors will be closely monitoring developments in the geopolitical situation and its impact on crude prices to predict the outcome of any investment.
“The trend in foreign flows, along with domestic flows, will also be crucial. On the domestic front, the focus will be on the outcome of the upcoming MPC meeting on October 9,” Mishra added.
