US Fed Interest Rate Decision, Quarterly Earnings, Macroeconomic Data Announcements To Drive Markets This Week: Analysts

The experts noted that the US Fed meeting set to take place from October 31 to November 1 will reveal the US regulator’s decision about interest rates and will majorly drive the markets in the week.

Markets this week will be impacted by the upcoming meeting of the US Federal Reserve in the week, global cues, macroeconomic data announcements, and the ongoing quarterly earnings season, analysts said. The experts noted that the US Fed meeting set to take place from October 31 to November 1 will reveal the US regulator’s decision about interest rates and will majorly drive the markets in the week. 

Further, other indicators like the foreign investors’ trading activity and fluctuations in the global oil benchmark Brent crude will also be monitored by the investors, reported PTI. 

Santosh Meena, head of research at Swastika Investmart Ltd, noted, “All eyes are on the outcome of the US Federal Reserve meeting scheduled for November 1, particularly due to the multi-year high levels of the US bond yields. Additionally, the policy decisions of the Bank of Japan will be closely watched. Beyond these key events, global factors will also play a crucial role. Economic data releases from the US and China, as well as the ever-changing geopolitical situation, will influence market sentiment.”

Companies expected to reveal their quarterly earnings in the week include Adani Green Energy, DLF, TVS Motor Company, Bharti Airtel, GAIL, Tata Steel, Adani Enterprises, Tata Motors, MRF, and Hero MotoCorp among others. Meena added that the earnings reports would provide a crucial understanding of the financial health of the companies. Further, he pointed out that the monthly auto sales statistics would also be monitored as they would represent the demand during the ongoing festive season. 

Arvinder Singh Nanda, senior vice president at Master Capital Services Ltd, stated that the markets would also keenly observe the macroeconomic announcements in the week. 

He said, “Market will react to major domestic and global economic events such as India's S&P Global manufacturing and services PMI (Purchasing Managers' Index), China manufacturing and non-manufacturing PMI, Eurozone inflation and GDP data, crude oil inventories, UK manufacturing PMI, US manufacturing and services PMI, initial jobless claims, non-farm payrolls, unemployment rate, and the Fed interest rate decision.”

Notably, the BSE Sensex dropped 1,614.82 points or 2.46 per cent last week. Ajit Mishra, SVP- technical research, at Religare Broking Ltd, attributed the performance of the domestic market to the sustained weakness in global markets. 

After dropping for six consecutive trading sessions, both the benchmark indices, Sensex and Nifty registered a recovery of over 1 per cent on Friday.