You are here: Home » International » News » Markets
Business Standard

Stock markets likely to remain under pressure due to US elections, Covid-19

Stock markets are expected to remain under pressure this week due to the overhang of US presidential polls and uncertainty over global growth due to resurging cases of coronavirus

2020 US elections | Markets | world markets

Press Trust of India  |  New Delhi 

Tokyo stock market
File photo of stock market tickers on a digital wall

Stock are expected to remain under pressure this week due to the overhang of US presidential polls and uncertainty over global growth due to resurging cases of coronavirus, according to analysts.

Uncertainty over the global growth after recent spike in coronavirus cases in the US and Europe and resultant lockdowns in few European countries have weighed on investor sentiment.

Benchmark index Sensex declined by 2.63 per cent last week following a global rout in equity The broader Nifty dropped 2.41 per cent last week.

Analysts, however, expect that better-than-expected financial results so far and improved high-frequency economic data are expected to support the market. Quarterly earnings from companies like HDFC and Punjab National Bank and auto sales numbers this week would also steer the market, said analysts.

"Going ahead, the market is likely to remain under pressure, till the overhang of US elections and the surging global cases in Europe continue. US elections would dominate the global this week alongside Fed meeting.

"Apart from this, US non-farm payroll data, as well as PMI data for the US, the UK and China, would be tracked by investors," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Echoing the view, Vinod Nair, Head of Research at Geojit Financial Services said that markets will remain under pressure going forward as political developments related to the US election will act as an overhang amidst higher volatility.

PMI data for the manufacturing and services sector are due this week, which would influence trading sentiment in the domestic market.

Ajit Mishra, VP - Research, Religare Broking Ltd said, "Markets would first react to Reliance industries numbers in early trade on Monday and then focus would again shift to global cues, thanks to the scheduled US elections."

Reliance Industries Ltd on Friday reported a 15 per cent drop in its second-quarter net profit on the weak oil business.

"Domestic markets are expected to sentimentally imitate their global counterparts this week especially since the US election is a major event," said Nirali Shah, Senior Research Analyst, Samco Securities.

HDFC, Punjab National Bank, Adani Ports, Sun Pharmaceutical, Lupin, BHEL, Cipla and Union Bank of India are scheduled to release their quarterly earnings this week.

Auto companies will also be in focus this week with sales data announcement. Fed interest rate decision will also be tracked by investors.

Concerns over prospects of global economic recovery due to the resurgence of COVID-19 in various nations continue to weigh on investors' sentiments and are likely to witness volatility this week, analysts said.

(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.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, November 01 2020. 13:07 IST