In the upcoming holiday-shortened week, domestic equity markets are poised to be influenced by
several key factors, according to market analysts. These factors include quarterly earnings reports,
global economic trends, and the fluctuation in crude oil prices. Additionally, attention will be on the
ongoing conflict between Hamas and Israel in the Middle East, as well as the trading activity of foreign
investors.
Global markets are currently experiencing fragility due to heightened focus on rising US bond yields,
global economic uncertainties, and geopolitical tensions. These variables are being closely monitored
because of their potential to impact market sentiment.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, notes that market participants will also be closely watching the movement of the Indian rupee against the US dollar and the trajectory of crude oil prices, along with investments by foreign institutional investors (FIIs) and domestic institutional investors (DIIs) during the earnings season.
A sense of volatility may prevail in the markets due to the monthly derivatives expiry scheduled for
Thursday. With a shortened holiday week, Ajit Mishra, SVP – Technical Research at Religare Broking Ltd,
anticipates that volatility will remain high, largely influenced by the ongoing earnings season and the
expiration of October month derivatives contracts.
The Israel-Palestine conflict will continue to be a factor guiding market movements. Keeping an eye on
the earnings reports of major Indian companies is advised. Moreover, there will be a focus on key global
and domestic events, including the UK services PMI, US manufacturing and services PMI, US GDP, initial
jobless claims, and crude oil inventories, as highlighted by Arvinder Singh Nanda, Senior Vice President
at Master Capital Services Ltd. Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities
Ltd, underlines that markets both in India and worldwide will be responsive to geopolitical challenges,
oil price fluctuations, and bond yield changes, all while specific stocks react to quarterly results.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, expects the
earnings season to gain momentum in the truncated week, which will play a pivotal role in determining
market trends, alongside global cues.
Additionally, on the global front, the European Central Bank (ECB) will announce its interest rate decision this week. Among the highly anticipated earnings results, Axis Bank, Tech Mahindra, Maruti Suzuki, and Bajaj Finserv are set to announce their financial figures for the September quarter.