Stock market outlook
NEW DELHI: Dalal Street is heading into a busy week, with company earnings, US Federal Reserve’s interest rate decision, crude oil prices and tensions in Middle East tensions keeping investors on edge.
The debut of Jio Platforms on the stock exchanges on October 28 and the buying and selling activity of foreign investors will also be in focus.On the domestic front, investors will track September industrial production and manufacturing data, due on October 28, along with quarterly results from major companies. TVS Motor, Asian Paints, Trent, Sun Pharma, Bharat Electronics, Indian Oil, Bank of Baroda and GAIL India are among those scheduled to announce their earnings."Investors will track September industrial production and manufacturing output data on October 28. Corporate earnings will remain a key driver, with TVS Motor, Asian Paints, Trent, Sun Pharma, Bharat Electronics, Indian Oil, Bank of Baroda and GAIL India, among others, scheduled to announce their results," Ajit Mishra, SVP, research, Religare Broking, told PTI.However, global cues could play a significant role in determining the course of domestic equities.
The US Federal Reserve’s October 27–28 meeting is expected to be the main international event, with investors looking beyond the rate decision to assess the central bank’s guidance on the path ahead."The US Federal Reserve’s October 27–28 meeting will be the principal global trigger. Markets largely expect rates to remain unchanged, making the policy guidance more important than the decision itself. A continued focus on inflation could push US yields and the dollar higher and keep foreign flows into emerging markets under pressure, while balanced guidance may support a temporary recovery in global equities," Hariselvan Radhakrishnan, founder & CEO of HST Wealth said.The movement of US Treasury yields, the dollar and crude oil prices will remain important for domestic markets, alongside geopolitical developments and global risk appetite. Elevated crude prices, particularly amid escalating tensions, pose a concern for India because they threaten to raise the country's energy import bill, complicate the inflation outlook and put pressure on the rupee and corporate margins."The US Federal Reserve’s upcoming monetary policy meeting will be another key event for global markets. Investors will look for signals on the interest rate outlook, particularly as elevated US Treasury yields continue to influence the dollar and global risk appetite," Ponmudi R, CEO told PTI.On the domestic front, the industrial production figures and corporate earnings will be watched for indications of whether India's resilient growth outlook can withstand external pressures, Radhakrishnan said.Jio Platforms’ scheduled listing on October 28 will provide another event for investors to track, with its market debut expected to influence sentiment in the primary market. Foreign investors’ trading activity and broader global trends will also remain on the radar.The developments come after a weak week for Dalal Street. In a holiday-shortened trading week, the BSE Sensex fell 1,605.44 points, or 2.15 per cent, while the NSE Nifty declined 546.15 points, or 2.36 per cent.