How will the stock market be next week?
Last week was not very good for those who invested money in the stock market. Even in a week with fewer trading sessions, both Sensex and Nifty closed in the red. BSE Sensex fell by more than 722 points, while National Stock Exchange’s Nifty also slipped by 229 points.
Now when the new business week is about to begin, the question in every investor’s mind is whether the market will recover from this fall or will the pressure increase further? According to market experts and analysts, this week can be very volatile.
This week, the movement of the market will not be decided by any one thing, but by many big developments taking place at the domestic and international level simultaneously. Investors will have to keep an eye on inflation data, quarterly results of big companies and global signals at the same time. Let us understand what are the big factors this week, which can have a direct impact on your earnings.
Inflation figures will decide the trend of interest rates
This week, the market’s eyes will be focused mostly on inflation figures. The government is going to release the figures of retail inflation i.e. Consumer Price Index (CPI) and Wholesale Inflation (WPI) for the month of October.
Ajit Mishra, Senior Vice President, Religare Broking, says that these figures are very important. From this we will know what is the situation of inflation in the country. Have prices remained under control during the festive season or has the burden on the common man’s pocket increased?
On the basis of these data, Reserve Bank of India (RBI) takes any decision regarding interest rates in its upcoming monetary policy. Enrich Money CEO Ponmudi R also believes that the retail inflation data will give a clear signal to investors about the future of interest rates. If inflation figures increase, it will not be good news for the market, because then the hope of cutting interest rates will become further away. This will have a direct impact on market sentiment.
Eyes on the report cards of ‘big’ companies
Apart from inflation, this week is also very important in terms of quarterly results of companies. Many ‘giants’ i.e. big companies on Dalal Street are going to present their second quarter (July-September) results.
According to market analysts, this week all eyes will be on the performance of big companies like ONGC, Bajaj Finserv, Asian Paints, Tata Steel and Oil India.
How have been the profits of the companies, how much has their income grown, and most importantly, what is their outlook for the coming times… all these things will decide the mood of the market. If the results of these big companies are better than expected, then a new rise can be seen in the shares of those sectors as well as in the entire market. But if the results remain weak, then the downward pressure of last week may continue this week also.
FPI’s stance will make or break things
Along with domestic factors, international market signals will also matter a lot this week. According to Vinod Nair, Head of Research, Geojit Investments, the further movement of the market will also depend on how far the issue of ‘government shutdown’ reaches in America.
Ponmudi R also expressed concern over this and said that due to this shutdown, many important economic figures in America have not been released on time. When there is no data, investors and policy makers are not able to know the real picture of the economy, which is creating an environment of uncertainty.
Other than this, Foreign Portfolio Investors (FPI) The activities of are also very important for the market. FPIs have been withdrawing money from Indian markets for some time now. It remains to be seen what their stance is this week, whether they continue selling or return to buying.
Along with all this, the movement of rupee and dollar and crude oil prices in the international market will also affect the direction of the market. Also, investors will also keep an eye on what progress is made in the ongoing trade talks between America, India and China.