Markets Ahead: US Presidential Election, Fed’s Rate Decision To Influence Investors

The US presidential election is scheduled for November 5 this week. Further, the Federal Reserve is also set to hold its meeting to decide the monetary policy ahead

The equity markerts in the coming week will be impacted by the US presidential eloections, the interest rate decision from the Fed, and the trading perspective of foreign investors, analysts noted. The experts stated that corporate earnings from domestic companies will also have an effect on sentiments in the market.

The US presidential election is scheduled for November 5 this week. Further, the Federal Reserve is also set to hold its meeting to decide the monetary policy ahead. Additionally, global trends will be keenly observed by market participants, reported PTI.

Elaborating on the week ahead, Santosh Meena, Head of Research, Swastika Investmart Ltd, noted, “The upcoming week is poised to be eventful on the global front. The US presidential election on November 5 is a key focus, and the US FOMC (Federal Open Market Committee) meeting will be crucial. Geopolitical tensions and oil price movements will remain key variables as well.”

Meena pointed out that the week will include the final phase of earnings for the second quarter. Palka Arora Chopra, Director, Master Capital Services Ltd, said multiple macro figures are to be revealed in the week.

“The outlook for the market will be guided by the US presidential election and major macroeconomic data such as HSBC India manufacturing PMI, services PMI, US Fed interest rate decision, US S&P global composite PMI, US S&P global services PMI and BoE (Bank of England) interest rate decision,” Chopra stated.

Notably, the stock market last week experienced a good rally. The BSE benchmark Sensex surged 321.83 points or 0.40 per cent. The exchanges also held a one-hour special ‘Muhurat Trading’ session to celebrate the festival of Diwali on November 1. This also signalled the start of the new Samvat 2081.

Ajit Mishra, SVP, Research, Religare Broking Ltd, explained, “This week, investors' attention will be on developments in the US markets, especially the upcoming elections on November 5 and the Federal Reserve's policy meeting. On the domestic front, earnings reports from key companies, including Dr Reddy's, Titan, Tata Steel, M&M and Tata Motors will be in focus. Additionally, the release of key economic indicators, such as the HSBC manufacturing PMI and services PMI, will provide insight into the country's economic momentum.”