Week Ahead: Stock Market Eyes Fed Meeting, Earnings and Oil Trends
Mumbai, October 25: Next week is expected to be a significant one for India's stock market. Investors will track the US Federal Reserve meeting, quarterly results, movements in crude oil prices and the ongoing US-Iran standoff, all of which are likely to shape market direction.
The US Federal Reserve's meeting on interest rates is scheduled for October 27-28. It is taking place against a backdrop of high crude oil prices and global volatility, which have raised the risk of higher inflation. The outcome of the meeting will be announced on October 28, and global investors are keeping a close eye on it.
The US-Iran situation is another major factor. US President Donald Trump has commented on fresh air strikes on Iran, and crude oil continues to hover at elevated levels. Market participants say these factors will carry significant weight in the coming sessions.
From October 26 to 30, a long list of major companies will release their earnings. These include Indian Overseas Bank, Bank of Maharashtra, Mankind, Paytm, NDTV, Tata Consumer, ACC, Bajaj Auto, Maruti Suzuki, JSW Cement, JSW Infra, L&T, SAIL, Tata Capital, Adani Enterprises and Adani Ports.
The week that just ended was a painful one for the Indian stock market, as selling pressure spread across most segments.
From October 19 to 23, the Sensex slid 1,605.44 points, or 2.15 percent, to close at 73,123.83. The Nifty fell 546.15 points, or 2.36 percent, to finish at 22,600.00.
The decline was steeper in mid-cap and small-cap shares. The Nifty Midcap 100 index shed 3,329.10 points, or 5.63 percent, to end at 55,800.65, while the Nifty Smallcap 100 index dropped 1,390.35 points, or 7.27 percent, to 17,739.45.
Defence stocks led the fall, with the Nifty India Defence index down 7.05 percent and ranking as the top loser. Nifty Consumer Durables fell 6.42 percent, Nifty Metal 5.40 percent, Nifty Media 5.15 percent, Nifty Realty 5.04 percent, Nifty Energy 4.62 percent, Nifty FMCG 4.34 percent and Nifty PSE 3.91 percent.