Business News Desk – Another week of consolidation was seen in the Indian stock market. Last week, the market started with caution in view of the US presidential elections. After the victory of Donald Trump, recovery was also seen in the market from lower levels. But, due to many global events and quarterly results of companies, this momentum could not be sustained. Even in the second week of November, the market will keep an eye on many factors.
This is almost the last week of quarterly results of companies. The movement of the market will be decided on the basis of geopolitical tensions in the Middle East, withdrawal of foreign funds, crude oil prices and economic data. The domestic stock market has been witnessing a decline on weekly basis for 5 consecutive weeks. The September quarter results of companies and continuous selling by FIIs are considered to be the biggest reasons for this. Nifty has slipped nearly 8 percent from its peak on September 27. Selling pressure is also being seen in the broader market. Let us know further which factors will decide the market movement this week.
Quarterly results and economic data
Now that the major global developments are over, the market’s focus will return to domestic factors. Almost the final phase of July-September quarter results has started. The revival of domestic manufacturing activities is being considered a good sign. After the elections, analysts now believe that government expenditure will also increase and its effect will be seen in the second half of the current financial year. Consumption figures are expected to be better in the third quarter due to the festive season. This may also increase market sentiment. IIP and inflation figures will be released on November 12. Wholesale inflation figures will be released on November 14.
What will happen in the primary market?
3 new IPOs are expected to open in the new week and along with this 4 new listings are also to take place. The IPO of Jinka Logistics Solutions will open for subscription in the mainboard segment. The IPO of Niva Bupa Health Insurance will close on November 11. 2 new IPOs will open for subscription in the SME segment. Apart from this, Segility India, Swiggy, ACME Solar Holdings and Niva Bupa Health Insurance will be listed in the stock market in the new week. There have been no new listings in the SME segment.
Institutional Investor Data
Due to continuous heavy selling by Foreign Institutional Investors (FIIs), the Indian market is currently witnessing underperformance. Last week also, FIIs sold about ₹20,000 crore. However, during this period DII has also made purchases worth ₹14,391 crore. In the last 29 sessions, FIIs have sold a total of ₹1.41 lakh crore. After the relief package in China, the interest of FIIs is increasing there and they are showing interest in the Chinese market due to cheaper valuations than the Indian market.
keep an eye on global signals
If we look at the global front, markets around the world have got relief after the victory of the Republican Party in America. Also, the US central bank – the Federal Reserve has cut interest rates by 25 basis points. The market had expected this earlier also. This week, on November 13, inflation data will be released in America, which will be important from the Fed policy point of view. Besides, the relief package in China will also be monitored. The performance of US bond yields and dollar index is also going to be important for emerging markets like India.
crude oil price
During the last session, the price of crude oil in the international market closed with a decline of about 2 percent. The possibility of supply disruption due to the storm in America and Mexico has reduced. At the same time, there was no rise in crude oil due to the announcement of relief package in China. On Friday, the price of Brent crude oil fell 2.3 percent to $ 73.87 per barrel. However, on a weekly basis, crude oil has seen an increase of about 1 percent. This rise in crude oil has been seen due to the fear of strict sanctions being imposed by the Trump administration on Iran and Venezuela. Strict sanctions on these two countries may reduce the supply of crude oil in the global markets.
