Sensex, Nifty: IPOs, Quarterly Results, US Fed Rates – Factors That Could Affect Market This Week

The week ahead will be crucial for the stock market as it kicks off the new month and will be heavily loaded with macroeconomic data and quarterly earnings announcements from some of the major companies.

Economically, market participants will closely monitor budget deficit and infrastructure output data on Oct. 31, S&P Global Manufacturing PMI and Balance of Trade (for now) on Nov. 1, and S&P Global Services & Composite PMI on Nov. 3.

In addition, auto and cement stocks will react to their monthly sales figures at the start of the week.

Also, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will hold an additional meeting on Nov. 3 to discuss its response to the government’s failure to keep inflation below 6%. .

Market watcher Dr. Joseph Thomas, Head of Research at Emkay Wealth Management, said: “The domestic stock market closed slightly higher on the last trading day of the week, although some of the major indices such as the Midcap and Small Cap indices came in much lower. Banking, IT, Metals and Healthcare also closed negatively, with local indices more or less tracking global indices, especially the US stock market.”

He said the 75 basis point hike in key interest rates by the ECB (European Central Bank) and the likelihood of an aggressive Fed rate hike at the FOMC meeting scheduled for next week and encouraging US GDP data are factors. which could be important for the markets next week.

“The MPC special supplemental meeting convened by the RBI for November 3, 2002, and the possibility of further rate hikes given ongoing inflation is something the market is cautiously considering at the moment. We may continue to see some volatility in the markets as we enter the new week,” he said.

Aside from the capital markets, there will also be a buzz in the primary market as four IPOs aim to fetch more than Rs 4,500 crore in the coming week. Bengaluru-based DCX Systems Ltd, cardiologist Dr. Naresh Trehan promoted Global Health Ltd, Bikaji Foods International Ltd and Fusion Micro Finance Ltd IPOs are likely to open for tender.

The initial public offering (IPO) of DCX Systems, a manufacturer of electronic subsystems and wiring harnesses, will start on October 31 and close on November 2. Also, the first share sale of Global Health, which operates and manages hospitals under the Medanta brand, will open for public subscription on November 3 and will end on November 7.

Fusion Microfinance, the New Delhi-based microfinance company, will launch its IPO between November 2 and November 4. The price range for the issue is set at 350-368 per share. While Bikaji Foods’ IPO goes public on Nov. 3 and closes under issuance on Nov. 7, a 35% quota is reserved for the retail class.

Market veteran Vinod Nair, head of research at Geojit Financial Services, said: “The secondary market volatility has led to a weak IPO market in 2022 and is expected to remain subdued. However, investor response to the offered IPOs has been decent due to the opportunity to invest in new companies at attractive prices.This was also in the context of the high liquidity available from HNIs and private investors seeking stock market gains.In most cases, IPOs were also attractive for institutional investors to invest into high-value new companies that brought diversification into schemes.”

Investors will also be eyeing some key quarterly figures this week. Among the companies set to release their quarterly results in the coming week are Bharti Airtel, Larsen & Toubro, Tata Steel on October 31, Adani Ports and SEZ, JK Tire & Industries, Karnataka Bank, Sun Pharma, Tech Mahindra, UPL on November 1, Adani Transmission, Amara Raja Batteries on November 2, HDFC, Hero Motocorp and Adani Enterprises on November 3, CIPLA, TVS Motor Company and Titan on November 4, Power Grid and SBI on November 5.

Globally, investors will focus on key economic data from the United States (U.S.), especially the Federal Open Market Committee (FOMC) rate decision on Nov. 2, as the central bank plans to extend its revaluation cycle through 2023. . other key economic data include: Redbook and S&P Global Manufacturing PMI on Nov. 1, API Change Crude Oil Inventory on Nov. 2, Trade Balance, Initial Unemployment Claims, S&P Global Services PMI on Nov. 3, and Unemployment Rate on Nov. 4.

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