Q2 Earnings, Global Trends, Foreign Investors’ Trading Activity to Drive Market Movement: Analysts

Top companies including HPCL, NHPC, IRCTC, Power Grid, Tata Power, Ashok Leyland, Coal India, Hindalco, LIC, Mahindra & Mahindra and Tata Chemicals will release their quarterly numbers in the coming days.

The ongoing quarterly corporate earnings chart, global trends and foreign investor trading activity are key factors driving momentum in equity markets this week, analysts said.

Moreover, the markets will also focus on the global benchmark Brent oil and the rupee-dollar trend.

“On the domestic front, the upcoming release of the Q2 earnings report is expected to have a significant impact on market sentiment. If FIIs (foreign institutional investors) switch to net buying, it may further drive the market’s upward movement,” Swastika Investmart Ltd head. of Research said Santosh Meena.

While geopolitical concerns persist, they have had limited impact on the market’s overall trajectory, Meena said, adding that the resilience of global markets will be crucial in determining the durability of this positive momentum. On the macroeconomic front, the industrial production data is scheduled to be released on Friday after market hours.

“Global and domestic macroeconomic events, FII, DII (Domestic Institutional Investors) investment pattern, crude stocks, movement of the rupee against the dollar, US bond yields, the ongoing Israel-Hamas conflict, the ongoing Q2 earnings season will dictate the market trend this week ,” said Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd.

Some major companies will announce their quarterly numbers in the coming days such as HPCL, NHPC, IRCTC, Power Grid, Tata Power, Ashok Leyland, Coal India, Hindalco, LIC, Mahindra & Mahindra, Tata Chemicals, Nanda said.

,The 30-share BSE Sensex gained 282.88 points, or 0.44 percent, to settle at 64,363.78 on November 3. The Nifty rose 97.35 points or 0.51 percent to 19,230.60.

“Optimism is supported by firm global tracks, stable macroeconomic data and strong domestic corporate earnings. Indications that the Fed is unlikely to raise interest rates in the future and modest declines in oil prices add to the optimism,” Vinod Nair, Head of Research at Geojit Financial Services , said on November 3.