New Delhi. The presidential elections to be held in America on November 5, the Federal Reserve’s decision on interest rates, the activities of foreign portfolio investors (FPIs) and the quarterly results of domestic companies will decide the direction of the stock markets this week. Analysts have expressed this opinion.
Experts said that this week will be full of events. Many macroeconomic data are to come during the week, which will be important for the direction of the market. Apart from this, global trend will also give direction to the market. Santosh Meena, Head of Research, Swastika Investmart Limited, said, “This week is going to be eventful on the global front. Everyone’s eyes are on the US presidential election to be held on November 5. Apart from this, the meeting of the American FOMC (Federal Open Market Committee) will be important. “Geopolitical pressures and crude oil prices will also affect the market.” Meena said that on the domestic front, the final phase of second quarter results is going to be very important. Also, everyone’s eyes will be on the attitude of foreign institutional investors (FIIs).
Palka Arora Chopra, Director, Master Capital Services Ltd, said, “The market outlook will be influenced by the US Presidential Elections and HSBC India Manufacturing PMI, Services PMI, Federal Reserve’s interest rate decision, US S&P Global Composite PMI, Global Services PMI and Bank of England (England) PMI. “Will take direction from the BOE’s interest rate decision.” Major stock exchanges BSE and NSE conducted a special one-hour ‘Muhurat trading’ on November 1 on the occasion of Diwali, which marks the beginning of the new Samvat 2081.
Ajit Mishra, Senior Vice President (Research), Religare Broking Limited, said, “This week investors will keep an eye on the developments in the US market. Especially on the presidential elections to be held on November 5 and the policy meeting of the Federal Reserve.” Mishra said, “On the domestic front, quarterly results of other companies including Dr. Reddy’s, Titan, Tata Steel, Mahindra & Mahindra and Tata Motors will come. Also, key figures like HSBC Manufacturing PMI and Services PMI will be released, which are of great importance from the market point of view.
Last month, due to continuous selling by foreign institutional investors (FIIs), major indices fell by more than seven percent from their all-time high. VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “Global markets will react to the US presidential elections for a few days, after which fundamentals like US gross domestic product (GDP) growth, inflation and the Federal Reserve’s decision on interest rates will be seen. “Factors will influence market movements.”