US presidential election, Fed interest rate decision, FIIs trading key market movers this week: Analysts

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The November 5 US presidential elections, Federal Reserve interest rate decision, trading activity of foreign investors, and the upcoming quarterly earnings from domestic firms are the major triggers that would influence sentiments in the Indian equity market this week, analysts said.

In an eventful week ahead, a host of macroeconomic data announcements and global trends would also drive the markets, experts said.

“The upcoming week is poised to be eventful on the global front. The US presidential election on November 5 is a key focus, and the US FOMC (Federal Open Market Committee) meeting will be crucial. Geopolitical tensions and oil price movements will remain key variables as well,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Domestically, the final phase of Q2 earnings will be critical, while foreign institutional investor (FII) behaviour will remain under close watch, Meena added.

“The outlook for the market will be guided by the US presidential election and major macroeconomic data such as HSBC India manufacturing PMI, services PMI, US Fed interest rate decision, US S&P global composite PMI, US S&P global services PMI and BoE (Bank of England) interest rate decision,” Palka Arora Chopra, Director, Master Capital Services Ltd, said.

Leading stock exchanges BSE and NSE conducted a one-hour special ‘Muhurat Trading‘ session on the occasion of Diwali on November 1, marking the start of the new Samvat 2081.

Last week, the BSE benchmark, Sensex, climbed 321.83 points, or 0.40 per cent.

“This week, investors’ attention will be on developments in the US markets, especially the upcoming elections on November 5 and the Federal Reserve’s policy meeting,” said Ajit Mishra — SVP, Research, Religare Broking Ltd.

“On the domestic front, earnings reports from key companies, including Dr Reddy‘s, Titan, Tata Steel, M&M and Tata Motors will be in focus. Additionally, the release of key economic indicators, such as the HSBC manufacturing PMI and services PMI, will provide insight into the country’s economic momentum,” Mishra said.

Relentless selling by FIIs last month contributed hugely to the over 7 per cent decline in benchmark indices from their all-time peaks.

“Global markets will respond to the US presidential elections for a few days, after which fundamentals like US GDP growth, inflation and rate cut by the Fed will influence market moves,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.