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Geopolitical issues, Q2 results to set equity market course (Market Outlook)

IANS  |  Mumbai 

With the impending US sanctions on Iran, as also the ongoing quarterly earnings season and the upcoming festival of Diwali, the Indian equity market is likely to witness a short but eventful trading week ahead.

Among the global factors, the US reimposing sanctions on from Monday (November 5) is seen as a major depressant for global investor sentiment, which would eventually reflect on the Indian market.

"The coming week is truncated on account of festivities in India, but (dotted with an) important series of events within and outside the country. The week will begin with the global blockade against followed by the US legislative elections, apart from ongoing corporate earnings in India," said Rahul Sharma, with

"While the mood will be cheerful due to Diwali, these events will dictate market movement and investors should follow a cautious approach during the three-week," he added.

Trading at stock exchanges, however, won't take place on November 7-8 on account of Diwali, other than the brief traditional on Diwali day.

Meanwhile, the US has temporarily allowed eight countries to continue buying from Iran, and features in the list, according to This would most likely soothe Indian market sentiments.

Another geopolitical matter that the markets would follow is the US-trade talks. Trump last week said his conversation with his Chinese counterpart laid "heavy emphasis on trade" and also described it as "long and very good".

Further, the ongoing quarterly earnings would also influence the in the next few trading days, analysts believe. Corporate results were a major factor for the substantial gains made by both key equity indices during the week ended Friday (November 2).

For the week under review, the (BSE) Sensex gained 1,662.34 points, or 4.74 per cent, to close at 35,011.65.

The 50-share Nifty of (NSE) advanced 523 points, or 5.21 per cent, to settle at 10,553.

Investor sentiments also improved with the downward movement in prices.

"The benchmark Brent crude fell six per cent this week and 16 per cent since the beginning of October to $72.91 a barrel as fears of shortage faded," said Sharma.

Analysts are of the view that value-buying by investors after the fortnightly loss also supported the Indian equity market in the week gone by.

Provisional figures from the stock exchanges showed that foreign institutional investors sold shares worth 5,706.24 crore during the week, whereas domestic institutional investors bought 6,377.02 crore worth of stocks.

Figures from the NSDL showed that foreign portfolio investors divested 4,232.05 crore in the equities segment during the week ending November 2.

On the technical outlook for the upcoming week, Deepak Jasani, of Retail Research at HDFC Securities, said the NSE Nifty50 would witness resistance at 10,710 points and is likely to receive support at 10,460 level.

(Rituraj Baruah can be contacted at <mailto:rituraj.b@ians.in>)

--IANS

rrb-ravi/nir

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, November 04 2018. 10:30 IST
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