INSUBCONTINENT EXCLUSIVE:
Worsening tensions in the Middle East and foreign fund outflows were the major culprits behind the equity markets sharp fall last week |
(Photo: Shutterstock)3 min read Last Updated : Oct 06 2024 | 11:20 AM IST
The Reserve Bank of India's (RBI's) interest rate decision,
Middle East conflict and trading activity of foreign investors are the key factors that will dictate investors' sentiment in the market this
week, analysts said.
Moreover, quarterly earnings from IT bellwether TCS, domestic macroeconomic data and movement in global oil benchmark
Brent crude would also guide trends in the market.Click here to connect with us on WhatsApp
Worsening tensions in the Middle East and
foreign fund outflows were the major culprits behind the equity markets sharp fall last week.
"On the domestic front, the market's focus
will be on the RBI Monetary Policy Committee (MPC), which is scheduled to meet from October 7 to 9, 2024, with the outcome to be announced
with TCS, he said.
"Domestically, liquidity remains strong, with signs of sectoral rotation from overvalued segments to areas with more
Additionally, commodity prices, the US dollar index, and key US macroeconomic data will play a crucial role in determining market direction
Geopolitical developments will also continue to be a significant factor on the global front," Gour added.
Last week, the BSE Sensex tanked
3,883.4 points, or 4.53 per cent, and the Nifty slumped 1,164.35 points, or 4.44 per cent.
"The new milestones of both Nifty50 and Sensex
of 26,000 and 85,000, respectively were short-lived as the headwinds from the Middle East and flow of FII funds to cheaper Asian peers
impacted the investor sentiment
During the last week, these benchmark indices corrected by more than 4 per cent," Vinod Nair, Head of Research, Geojit Financial Services,
said.
Market investors became poorer by Rs 16.26 lakh crore in five days of heavy correction in equities.
"The outlook for the market
will be guided by major domestic and global economic data such as India's interest rate decision, industrial production, US FOMC (Federal
Open Market Committee) meeting minutes, initial jobless claims and the UK GDP data," Palka Arora Chopra, Director, Master Capital Services
Ltd, said.
Investors will be closely monitoring developments in the geopolitical situation and its impact on crude prices, said Ajit
Mishra, SVP, Research, Religare Broking Ltd.
"The trend in foreign flows, along with domestic flows, will also be crucial
On the domestic front, the focus will be on outcome of the upcoming MPC meeting on October 9," Mishra added.(Only the headline and picture
of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated
feed.)First Published: Oct 06 2024 | 11:20 AMIST
