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Stock markets are likely to be driven by global trends and FPI trading activity this week. The analysts said the conclusion of the earnings season would influence the marking in the coming days.
Factors leading to the bear market last week
Lower-than-expected quarterly earnings, Unabated foreign fund outflows, and global trade war fears hit market sentiments last week, where the benchmark indices Sensex and Nifty extended their downward trend to the eighth day in a row on Friday.
Focus on global developments amid turbulence
Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, “With the conclusion of the Q3 earnings season, now focus will be on global developments amid a turbulent market environment on account of Donald Trump’s trade policies.”
Moreover, the rupee-dollar trend and movement of Brent crude, the global oil benchmark, will also be tracked by investors.
“With the earnings season behind us, market focus will shift to trends in FII (Foreign Institutional Investors) flows and currency movements for further cues. Additionally, speculation regarding US tariffs and their impact on global trade will remain a key factor to watch,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
The US FOMC (Federal Open Market Committee) meeting minutes will also be in focus this week.
Osho Krishan, Senior Analyst – Technical & Derivatives, Angel One Ltd, said, “In the absence of key domestic triggers, global developments are more likely to provide impetus in setting up our market tone.”
“Several factors contributed to the market downturn, with sentiment being particularly rattled by US President Donald Trump’s announcement of reciprocal tariffs on US trading partners. Additionally, weak Q3 corporate earnings and sustained FII outflows further weighed on investor confidence,” Puneet Singhania, Director at Master Trust Group, said.
(With PTI inputs)
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