Mumbai
After a four-week decline exceeding 2.5%, experts predict that concerns about foreign institutional investors (FIIs) selling and weak earnings will continue to affect Indian stock market sentiment in the coming week, Experts said on Sunday.
Investors are focused on quarterly results from major companies like Bharti Airtel, Cipla, Dabur, and L&T. The approaching expiry of October derivatives contracts is expected to add to market volatility. Additionally, auto sales data will be closely monitored as the new month begins.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted that while Indian markets are not aligned with global trends, U.S. market performance remains significant, especially amid ongoing discussions on potential rate cuts and the upcoming presidential election. Last week, the Dow Jones Industrial Average (DJIA) fell over 2.5%, while the S&P 500 and Nasdaq showed mixed results.
The previous week saw negative market sentiment driven by persistent foreign fund outflows and disappointing earnings reports. Consequently, the Nifty and Sensex closed near their weekly lows at 24,180.80 and 79,402.29, respectively.
Vinod Nair, Head of Research at Geojit Financial Services, expressed optimism, suggesting the domestic market might enter oversold territory, allowing for a potential tactical bounce. He highlighted recent manufacturing data indicating a possible economic recovery in the second half of FY25, encouraging investors to consider quality stocks.
Overall, consolidation is likely to continue, with any trend reversal depending on reduced FIIs selling and the outcome of the U.S. presidential election.
