List of factors that will animate Dalal Street during Diwali
The Indian stock market closed in the red on Friday with the S&P Sensex BSE was down 677.77 points or 1.13%, while the Nifty 50 fell 185.60 points or 1.40%. Selling by foreign funds, weak global markets and mixed earnings weighed on market sentiment last week.
However, according to market analysts, during the week of Diwali, the Fed’s decision on interest rates, announcements of national macroeconomic data and quarterly earnings will be the main drivers of sentiment for the equity market.
The big wins that are lined up this week are HDFC, IRCTC, Tata Motors, Bharti Airtel, HPCL, Sun Pharma, Eicher Motors and SBI.
Vinod Nair, head of research at Geojit Financial Services, said India’s manufacturing and services PMI data released this week will be a key indicator in determining economic progress for October.
“In addition, the decisions of the Fed at its meeting this week will be a major factor that will boost global equities in the coming days,” he added.
This week, the equity market will remain closed Thursday for Diwali Laxmi Pujan and Friday for Diwali Balipratipada.
In addition, three IPOs will be open for subscription this week: Policybazaar, SJS Enterprises and Sigachi Industries. While two IPOs – from Nykaa and Fino Payments Bank IPO which opened last week – will also end.
The public offering of PB Fintech Ltd, which operates the online insurance platform Policybazaar and the Paisabazaar credit comparison portal, opens on November 1 and ends on November 3.
SJS Enterprises, with a price range of ??531-542 per share, will open on November 1 and close on November 3. Sigachi Industries IPO opens on November 1 and closes on November 2. Sigachi Industries Ltd has set a price range of ??161-163 a share for its initial public offering.
“The week will begin with auto sales figures for October where expectations are low, while the market will also assess consumer sentiment on Dhanteras and Diwali,” said Santosh Meena, head (research) at Swastika Investmart.
Yesha Shah, head (equity research) at Samco Securities, said that while the trading week will be small, it will be a hectic week.
According to Shah, “Despite the advent of the holiday season, semiconductor shortages, rising freight and commodity prices may continue to squeeze margins and weaken sales.”
“Markets are expected to remain bearish in the near term due to earnings recognition in various sectors and weak global indices. The second quarter earnings season is underway, with the market receiving mixed responses from companies reporting Along with corporate earnings, the market has to contend with macro numbers, ”said Rahul Sharma, co-founder of Equity99.
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