Q2 earnings, macro data, global trends likely to drive markets this week

Quarterly earnings, macroeconomic data announcements and global trends will drive the Indian stock markets in a holiday-shortened week, analysts said.

Stock markets would remain closed on Wednesday for the Guru Nanak Gurpurab holiday.

"The holiday-shortened week is expected to remain eventful, with multiple key data releases and major corporate earnings lined up. On the macroeconomic front, attention will turn to the final readings of the HSBC manufacturing PMI, as well as the HSBC services and composite PMI data, which will offer cues on domestic growth momentum.

"On the earnings front, several index heavyweights are set to announce their quarterly results, including Bharti Airtel, Titan Company, Adani Enterprises, Adani Ports, InterGlobe Aviation, Mahindra & Mahindra, State Bank of India, Lupin, Bajaj Auto and Hindalco," Ajit Mishra- SVP, Research, Religare Broking Ltd, said.

Globally, developments related to trade deals and trends in major international markets will also be closely tracked for directional cues, he added.

Trading activity of foreign investors would also be tracked by investors, an expert noted. Foreign investors turned net buyers with a net infusion of Rs 14,610 crore in October after three months of withdrawal.

"Markets are likely to take cues from a busy macro calendar this week, with a series of S&P global manufacturing and services PMI readings for India and major economies set to provide fresh insights into global growth momentum... These data points, along with movements in the Indian rupee against the dollar, will play a crucial role in shaping investor sentiment and sectoral trends," Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said.

Last week, the BSE benchmark dropped 273.17 points or 0.32 per cent, and the NSE Nifty dipped 73.05 points or 0.28 per cent.

Vinod Nair, Head of Research, Geojit Investments Limited, said, "The Indian markets wrapped up the last week of October with profit-booking as investors took some chips off the table after the sustained rally."  Looking ahead, the market will closely monitor the nations' trade talks with the US and the ongoing corporate earnings season, which so far has delivered mixed results, he added.