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This week, the direction of the stock market will be decided by domestic inflation figures, quarterly results and global trends. Factors like the movement of foreign investors and the US government shutdown will also affect the market. Sector-wise movement will be decided by the results of companies like ONGC, Bajaj Finserv and Asian Paints. Overall, this week will be one of both caution and opportunity for investors.
New Delhi. This week, many important factors will decide the trend of the stock market, among which domestic inflation figures, quarterly results and global trends will be most important. Experts say that the market may also see major fluctuations due to the activities of foreign investors. This week, Consumer Price Index (CPI) and Wholesale Price Index (WPI) data will be released in the country, which will indicate the pace of inflation and the direction of monetary policy.
According to Senior Vice President (Ajit Mishra), Religare Broking, this week will be very important because many big macro data are going to be released on the domestic front. Both CPI and WPI figures will decide what stance the Reserve Bank takes regarding interest rates going forward.
Results of big companies including ONGC, Bajaj Finserv, Asian Paints
There will be movement on the earnings front also this week. Quarterly results of companies like ONGC, Bajaj Finserv, Asian Paints, Tata Steel and Oil India are about to come, which will impact sectoral sentiment. CEO of Enrich Money (Ponmudi R) says that economic factors both at domestic and global levels will decide the movement of the market this week. Especially all eyes will be on the CPI data for October, which can give clear signals to investors about the future direction of interest rates.
Global factors and role of foreign investors
On the global front, the US government shutdown and fluctuations in crude oil prices will give direction to the market. Dollar-rupee trend and movement of Brent crude can affect the sentiments of investors. Last week, during the holiday short week, BSE Sensex had fallen by 722 points and NSE Nifty by 229 points.
According to Vinod Nair, Head of Research, Geojit Investments Limited, the future direction of the market will depend on domestic inflation data, flow of foreign investors, the status of US shutdown and the progress of trade negotiations between US-India-China. Overall, this week is going to bring both ups and downs and opportunities for investors.
