Due in part to the global investor cheer brought on by the U.S. Federal Reserve’s rate pause, Indian equity markets concluded last week with respectable gains. Key events that will keep the markets buzzing this week include the US Balance of Trade data, major quarterly earnings, FII investments, and the Index of Industrial Production (IIP).
Economic data: Investors will be watching the IIP data, which is set to be released on November 10, closely. India’s industrial production increased by 10.3 percent year over year in August 2023, surpassing market expectations of 9 percent and reaching its highest level since June of last year. The previous month’s increase was 5.7%.
Quarterly Results: Major Public Sector Companies (PSUs) like BHEL, Oil India, NHPC, BEML, NBCC, SJVN, Coal India, ONGC, SAIL, IRCTC, Power Grid Corporation, and Hindustan Petroleum Corporation will release their Q2 earnings next week.
Additionally, this week’s other significant results announcements from Bajaj Electricals, Bharat Forge, Divi’s Laboratories, Emami, Apollo Tyres, CRISIL, Cummins India, Zydus Lifesciences, Bata India, Godrej Industries, Lupin, Nazara Technologies, Pidilite Industries, Tata Power, NCC, Apollo Hospitals Enterprise, Ashok Leyland, Torrent Power, Biocon, IPCA Laboratories, Mahindra and Mahindra, as well as others, will be closely watched by traders.
US market data: Investors will be watching the US for key economic data on a global scale. The US will release the Balance of Trade and Redbook on November 7, followed by the Initial Jobless Claims on November 9, the Michigan Consumer Sentiment report on November 10, and the Baker Hughes Oil Rig Count on November 10.
Foreign Investments: “The FII selling trend witnessed in September and October continued in early November, too,” stated Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. FIIs sold equity for Rs 3063 crores through the cash market in the first three days of November.”
This statement has been interpreted by the market as signalling the end of the rate-hike cycle. That explains the sharp correction in yields. “In the future, FII selling is probably going to be muted. They might even become buyers so they don’t miss the Indian market’s upswing. According to Vijayakumar, “frontline banking, autos, capital goods, and mid-caps in IT and real estate are poised to do well.”
Trend in international markets: Nifty stayed range bound through November 3 following a higher opening, according to Deepak Jasani, Head of Retail Research at HDFC Securities. He said that in the process, it increased for the second straight session and closed at 19230.6, up 97.4 points, or 0.51 percent. Friday saw gains in most Asian stocks as a result of Wall Street’s strength and growing speculation that the US Federal Reserve would stop raising interest rates. European stocks saw only slight increases.
According to a private survey, October services in India increased at their slowest rate since March as output and new business expansion remained sluggish because of inflationary pressure.