Q2 Results, Global Trends, Crude Prices To Drive Markets In The Week, Say Analysts

Experts noted that the global markets could face volatility amidst an increase in curiosity regarding the surging US bond yields, global economic uncertainty, and the geopolitical situation.

The trading week will be shortened as markets remain closed on Tuesday for Dusshera. 

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Quarterly earnings, global trends, and crude oil prices will drive the domestic equity markets in the week, analysts noted. Market experts stated that investors would keenly observe the Middle East as the conflict between Hamas and Israel continues, and keep track of the trading activity of foreign investors. Notably, the trading week will be shortened as markets remain closed on Tuesday for Dusshera. 

Pravesh Gour, senior technical analyst at Swastika Investmart Ltd, said that the global markets currently are going through a volatile state as there is a lot of curiosity regarding the surging US bond yields, global economic uncertainty, and the geopolitical situation, reported PTI. “These factors will be closely monitored, as they have the potential to influence market sentiment. Market participants will be closely watching the movement of the rupee against the dollar and crude oil prices, as well as investments by foreign institutional investors (FIIs) and domestic institutional investors (DIIs),” Gour stated. 

Ajit Mishra, SVP - technical research at Religare Broking Ltd, commented, “Markets may face volatile trends amid monthly derivatives expiry on Thursday. This week is a holiday-shortened one and we expect volatility to remain high due to the prevailing earnings season and scheduled expiry of October month derivatives contracts.”

The markets will further be impacted by the Israel-Palestine conflict, says Arvinder Singh Nanda, senior vice president at Master Capital Services Ltd. “One should keep a watch on the earnings of major companies in India. Some major global and domestic events will be in focus such as the UK services PMI, US manufacturing and services PMI, US GDP, initial jobless claims, and crude oil inventories,” he said. 

Shrikant Chouhan, head of equity research (retail) at Kotak Securities Ltd, noted, “Markets worldwide, including India, will respond to geopolitical challenges, oil prices, and bond yield fluctuations, with continued stock-specific action tied to quarterly results. We expect earnings season to pick up pace in a truncated week which would direct the market trend along with global cues.” 

Globally, the European Central Bank (ECB) is set to come out with it’s interest rate decision in the week, added Siddhartha Khemka, head - retail research at Motilal Oswal Financial Services Ltd. Khemka stated that Axis Bank, Tech Mahindra, Maruti Suzuki, and Bajaj Finserv are among the major firms expected to release their quarterly results in the week. Additionally, Canara Bank, Asian Paints, PNB, BPCL, and Reliance Industries are some of the major names set to announce their financial results for the September quarter.