The stock market may see a boom this week. The market will keep an eye on the second quarter results of companies, retail-wholesale inflation figures, global economic data, oil prices, FII-DII flow and upcoming IPOs. Factors that will determine the market movement this week… 1. Second quarter results of companies This week, the maximum focus will be on the second quarter (July-September) results of companies. Results of big companies like Reliance Industries, Infosys, HDFC Bank, Kotak Mahindra Bank, HCL Technologies, HDFC Life Insurance Company, Bajaj Auto, Axis Bank, Tech Mahindra, Nestle India, Wipro and Tata Consumer Products will come. Apart from these, results of HDFC Asset Management, Jio Financial Services, Bank of Maharashtra, PVR-Inox, LT Technology Services, CEAT, Central Bank of India, Tata Chemicals, Tata Communications, ICICI Lombard General Insurance, Zee Entertainment Enterprises, MCX India and RBL Bank will also be released. 2. Retail and wholesale inflation data Investors will keep an eye on the retail and wholesale inflation data for September to be released on October 14. Retail inflation rose to 3.65% in August as against 3.60% in the previous month. Wholesale inflation declined to a four-month low of 1.31% in August as against 2.04% in July. Apart from this, the balance of trade data for September will be announced on October 15. Passenger vehicle sales data for September will be released on October 17. Bank loan and deposit growth data for the fortnight ending October 4 and foreign reserve data for the week ending October 11 will be released on October 18. 3. Global economic data Investors will also keep an eye on US retail sales and weekly job data. Apart from this, the European Central Bank will announce its decision on interest rates on October 17. Experts believe that the central bank will cut the interest rate by 25 basis points to 3.25% as inflation has fallen below its 2% target. At the same time, ECB officials have already indicated a rate cut. Apart from Europe’s inflation data, the focus will also be on China’s GDP growth and industry capacity utilization for Q3-2024 and retail sales data for September. Along with this, inflation data of Japan and UK will also be monitored. Experts believe that inflation in the world’s second largest economy will come down somewhat in the third quarter, which was recorded at 4.7% in the second quarter, while it was 5.3% in the first quarter. 4. Oil Prices Oil prices are likely to be volatile at higher levels amid geo-political tensions in the Middle East region and expectations of more stimulus measures from China. However, experts do not expect a big jump in prices. Brent crude futures, the international benchmark for oil prices, fell 1.27% to $79.04 per barrel during the week, after gaining 9.1% in the previous week. Prices were below the 50 and 200-day EMAs (exponential moving averages) but above the short-term moving averages (10 and 20-day EMAs). 5. FII-DII flow The market will also keep an eye on the activities of foreign institutional investors (FIIs) and domestic institutional investors (DIIs). FIIs have sold shares worth Rs 58,395 crore in the cash segment so far in October, which is the highest withdrawal every month since March 2020. FIIs invested some money in the undervalued Chinese equity markets following its fiscal stimulus measures. Therefore, experts said that if there are any withdrawals, it is likely to have some impact on the markets going forward. At the same time, DII continued its strong support to equities, which compensated for the outflow of FIIs. DII bought shares worth Rs 57,792 crore in the current month, which is the highest ever in a month. Experts hope that in view of the strong economic growth, the continuation of domestic inflow in every major fall will provide a lot of support to equities. Last week, FII sold shares worth Rs 27,675 crore, which was compensated by DII by buying shares worth Rs 31,364 crore. 6. Initial Public Offering (IPO) Last week, the Sensex fell by 307 points. In the entire last trading week, the Sensex fell by 307 points (0.37%). On the last trading day i.e. Friday (11 October), the Sensex closed at 81,381 with a fall of 230 points. Nifty also fell by 34 points, it closed at 24,964.
