New Delhi: RBI’s interest rate decision, TCS’ earnings, crude oil prices and global bond yields will be important factors to determine stock market movement this week, analysts said.
Macroeconomic data announcements and foreign investors’ trading activity will also guide market trends, they added.
“RBI’s monetary policy meeting will be closely watched. The policy stance, inflation outlook and growth projections will provide important cues on the near-term trajectory of domestic interest rates and financial markets.
“This week will also mark the beginning of the earnings season, with index heavyweight TCS and retail major DMart among the key companies scheduled to announce their results,” Ajit Mishra, SVP – Research, Religare Broking, said.
On the data front, India’s final HSBC Services PMI and Composite PMI readings for September are scheduled to be released on October 6, he said.
TCS is slated to announce its September quarter earnings on October 8.
“Crude oil remains the most immediate macroeconomic concern. Brent crude trading above USD 100 a barrel continues to intensify pressure on India’s external balances and inflation outlook, while persistent geopolitical uncertainty threatens to keep the risk premium in energy prices elevated,” Ponmudi R, CEO – Enrich Money, an online trading and wealth tech firm, said.
Global bond yields will be another important determinant of risk appetite, he added.
“A moderation in US Treasury yields could ease pressure on emerging-market assets and support a more constructive environment for foreign flows. Conversely, a further rise in yields could reinforce the relative appeal of US assets and encourage continued portfolio reallocation away from emerging markets,” Ponmudi said.
Indian equities ended lower for the eighth consecutive week as foreign selling, rupee weakness, elevated crude and rising global bond yields weighed on sentiment.
Last week, the Sensex tanked 1,986.04 points, or 2.68 per cent, and the Nifty plunged 718.55 points, or 3.10 per cent. In September, the BSE benchmark lost 4,476.98 points, or 5.81 per cent, and the Nifty fell 1,459.95 points, or 6 per cent.
“The RBI’s policy decision will be the principal domestic trigger. The US Federal Open Market Committee (FOMC) minutes will subsequently offer insights into the extent of support among US policymakers for further monetary tightening beyond the September rate increase,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
PTI
