NEW DELHI: The week beginning Monday will be a busy one for Dalal Street, as investors will closely track two big developments- US FOMC (Federal Open Market Committee) meeting, which is scheduled on 2 November 2022 and the unscheduled RBI MPC meeting on 3 November.
Beside this, market participants will watch the fiscal deficit data, infrastructure output, GST collection, auto sales numbers and Q2FY earnings. There will also be a strong buzz in the primary market, as four IPOs are targeting to raise about R4,500 crore.
Bengaluru-based DCX Systems Ltd, Global Health Ltd, which operates Medanta Hospitals, Bikaji Foods International Ltd and Fusion Micro Finance Ltd IPOs are likely to open for subscription this week.
Joseph Thomas, Head of Research at Emkay Wealth Management, said: “The hike in the base rate by the European central bank by 75 bps and the likelihood of a rate hike by the hawkish Fed in the FOMC meeting, and the encouraging US GDP numbers are factors that may be of consequence to the markets in the coming week.”
Thomas added, “The special additional meeting of the MPC convened by the RBI for 3 November 2002, and the possibility of further rate hikes given the persistent inflation is something that market is pondering over with caution at this juncture. We may continue to see some volatility in the markets as we cruise into the new week.”
Pravesh Gour, Senior Technical Analyst, Swastika Investmart, said, “We are heading toward the last batch of Q2 earnings, which will lead to stock-specific movement.” “October auto sales numbers will be important because they will tell us about festival demand. Apart from this, the institutional flows will play a vital role because foreign investors have turned from sellers to buyers while domestic institutional investors are also participating on the positive side,” he added.
Despite weak global cues, the Sensex gained 652.70 points, or 1.1%, during the week to closed at 59,959.85, while the Nifty surged 210.5 points, or 1.2% to 17,786.80. The previous week witnessed softening in demand for banking stocks after a good rally.
Vinod Nair, Head of Research at Geojit Financial services said that the expectation that the central banks would slow down the pace of rate hikes from the beginning of CY23 gave comfort to the global markets.
He added, “As a result, bond yields across the globe softened, with the US 10yr yield diving below 4%. The strengthening rupee, along with a softening treasury yield and decent Q2 earnings results, will support the domestic market in the near term.”