Markets Ahead: Q4 Earnings, Geopolitical Tensions, Crude Prices To Drive Investor Sentiment

Several firms are scheduled to report their financial earnings in the week including Reliance Industries, HDFC Bank, Axis Bank, Infosys, and HCL Technologies

Investors will be on the lookout for the trading activity of foreign investors and inflation data in the coming week. Experts said that several factors would impact the sentiment in the market this week such as quarterly earnings of corporates and crude oil prices.

Several firms are scheduled to report their financial earnings in the week including Reliance Industries, HDFC Bank, Axis Bank, Infosys, and HCL Technologies, reported PTI. 

Ajit Mishra, SVP, Research, Religare Broking Ltd, explained, “From the macroeconomic front, investors will keep an eye on the CPI (consumer price index-based inflation) and WPI (wholesale price index-based) inflation data for September, scheduled to be announced on Monday. Investors will also closely track updates on geopolitical tensions, particularly their impact on crude oil prices, and foreign fund flows. Key domestic economic data, including CPI and WPI inflation, are also scheduled for release, which could influence market sentiment.”

Notably, the key equity benchmarks slipped last week. The BSE Sensex declined 307.09 points or 0.37 per cent to settle at 81,381.36, while the NSE Nifty50 dropped 50.35 points or 0.20 per cent in the week to close trading at 24,964.25.

Mishra further noted that trading last week started on a dampened note due to the consistent selling pressure from foreign investors, however, ‘selective strength in heavyweight stocks helped limit the losses in the later sessions’.

The markets are also scheduled to see three initial public offerings (IPOs) in the week, with one in the mainboard segment and the others in the SME segment. While Hyundai Motor India’s maiden offer is set to be open for subscription on Tuesday, Lakshya Powertech and Freshara Agro Exports are scheduled to start accepting bids from the public on October 16 and 17 respectively.

Vinod Nair, Head of Research, Geojit Financial Services, stated, “ Foreign Institutional Investors (FIIs) are capitalising on arbitrage opportunities in the Chinese markets, driven by stimulus measures and low valuations. The RBI policy was neutral, as the change in stance does not indicate the likelihood of a rate cut in the near term. The recent increase in the US 10-year Treasury yield, driven by an unexpected rise in core inflation and ongoing geopolitical challenges, has prompted FIIs to shift towards more affordable markets. This trend is expected to affect equity asset performance in the short term.”