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Consolidation was seen in the Indian stock market for another week. Last week, the market started cautiously in view of the US presidential election. After Donald Trump's victory, the market also showed recovery from the lower levels. But, due to many global events and quarterly results of companies, this boom could not be maintained. In the second week of November also, the market will keep an eye on many factors. It is almost the last week of quarterly results of companies. The market's movement will be decided on the basis of geopolitical tensions in the Middle East, foreign fund outflow, crude oil prices and economic data.
The domestic stock market has been witnessing a decline on a weekly basis for 5 consecutive weeks. The September quarter results of companies and continuous selling by FIIs are considered to be the biggest reasons for this. Nifty has slipped down by about 8% from its peak of 27 September. Selling pressure is also being seen in the broader market. Let us know further which factors will determine the market movement this week.
Quarterly results and economic figures
Since the major global events are now over, the market's focus will return to domestic factors. Almost the last phase of the July-September quarter results has started. The return of momentum in domestic manufacturing activities is considered a good sign. After the elections, analysts now believe that government expenditure will also increase and its effect will be seen in the second half of the current financial year.
Due to the festive season, consumption figures are expected to be better in the third quarter. This can also boost the market sentiment. IIP and inflation rate figures will be released on November 12. Wholesale inflation rate figures will be released on November 14.
What will happen in the primary market? 3 new IPOs are expected to open in the new week and 4 new listings are to happen. In the mainboard segment, Zinka Logistics Solution's IPO will open for subscription. Niva Bupa Health Insurance IPO will close on November 11. 2 new IPOs will open for subscription in the SME segment. Apart from this, Sagility India, Swiggy, ACME Solar Holdings and Niva Bupa Health Insurance will be listed in the stock market in the new week. There is no new listing in the SME segment. Institutional investor figures Due to continuous heavy selling by foreign institutional investors (FIIs), the Indian market is currently witnessing underperformance. Last week also, FIIs have sold about ₹ 20,000 crore. However, during this period DIIs have also made purchases of ₹ 14,391 crore. In the last 29 sessions, FIIs have sold a total of ₹ 1.41 lakh crore. After the relief package in China, the trend of FIIs is increasing there and they are showing interest in the Chinese market due to cheaper valuations compared to the Indian market. Looking at the global signals , on the global front, after the victory of the Republican Party in America, markets around the world have got relief. Also, the US central bank - Federal Reserve has cut interest rates by 25 basis points. The market was expecting this earlier as well. This week, inflation data will be released in the US on November 13, which is going to be important in terms of Fed policy. Along with this, eyes will also be on the relief package in China. For emerging markets like India, the performance of US bond yield and dollar index is also going to be important. Crude oil movement
During the last session, the price of crude oil closed down by about 2% in the international market. The possibility of supply disruption due to the storm in Mexico and America has reduced. At the same time, the announcement of relief package in China also did not lead to any rise in crude oil. On Friday, the price of Brent crude oil fell by 2.3% to $ 73.87 per barrel. However, on a weekly basis, there has been a rise of about 1% in crude oil. This increase in crude oil has been seen due to the possibility of strict sanctions by the Trump administration on Iran and Venezuela. Strict sanctions on these two countries may reduce the supply of crude oil in the global markets.
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