The stock market may see a boom in the Diwali week starting from October 28. Quarterly results of companies, global and domestic economic data including geopolitical tensions will decide the market movement. According to experts, a buy on dips strategy should be adopted in the market this week. Last week, the Sensex closed 2.24% lower at 79,402, below the psychological level of 80,000, while the Nifty fell 2.7% or 673 points to 24,181. It has come down 8% from its record high of 27 September. The Nifty Midcap 100 index fell 5.75% and the Smallcap 100 fell 6.5%. Bank, FMCG, auto, pharma, metal, oil and gas and realty stocks declined in the range of 2.5-7% during the week. 1. Quarterly results of companies: Adani, Maruti will release results This week, about 400 companies will release their July-September quarter results, including companies like Bharti Airtel, Sun Pharmaceutical Industries, Adani Enterprises, Adani Ports and Special Economic Zone, Cipla, Maruti Suzuki and Larsen & Toubro. Apart from these, results of non-Nifty 50 companies Adani Power, Ambuja Cement will also be released. 2. Indian and foreign investors: FIIs sold shares worth ? 20,000 crore Last week, Foreign Institutional Investors (FIIs) made net sales of shares worth more than Rs 20,000 crore in the cash segment. This took the total net selling to more than Rs 1 lakh crore in October, which is the highest monthly outflow so far. However, in the same week, domestic institutional investors (DIIs) bought shares worth Rs 22,915 crore, taking it to Rs 97,091 crore in October. The Indian rupee remained at 84 against the US dollar for the fourth consecutive week. 3. Global economic data: Data on US unemployment rate, GDP growth, PCE prices and real consumer spending for the July-September period will be released. The US economy registered a growth of 3% in the April-June period this year. Apart from this, data on monthly unemployment rate will also come. It was 4.1% in September. All these data are important before the interest rate decision of the Federal Open Market Committee on November 8. In the last meeting, the Fed Reserve cut interest rates by 50 bps. 4. Domestic economic data: Foreign exchange reserves data The final data of manufacturing PMI for October will be released on November 1. Preliminary estimates during the month indicate that the HSBC India Manufacturing PMI rose from 56.5 in September to 57.4 for October. Apart from this, investors will also keep an eye on the infrastructure output data coming on October 30 and the fiscal deficit data coming on October 31. Foreign exchange reserves data for the week ending October 25 will be released on November 1. 5. Geopolitical tension: Israel attacks Iran Israel retaliated in the early hours of Saturday after 25 days in response to Iran’s attacks. According to the New York Times, 20 targets were attacked in 3 hours. These include missile factories and military bases. There has also been an attack near Tehran’s ‘Imam Khomeini International Airport’. The attacks started at 2:15 am local time and continued till 5 am. Oil and nuclear infrastructure have not been targeted in these attacks on Iran, so crude oil prices may soften. Falling crude oil prices usually reduce transportation costs. Its positive effect can be seen on the stock market. Last week, the price of Brent crude rose 4% to $ 76.05 per barrel. A week before that, prices had fallen 7.6%. Decline in the stock market for five consecutive days The stock market fell for the fifth consecutive day on 25 October. The Sensex closed at 79,402 with a fall of 662 points (0.83%). Nifty also fell 218 points (0.90%), it closed at 24,180. At the same time, BSE Small Cap fell 1,307 points (2.44%). Out of 30 Sensex stocks, 20 fell and 10 rose. Out of 50 Nifty stocks, 38 fell and 12 rose. All sectors closed with a fall except FMCG and Healthcare Index. Nifty Consumer Durables fell the most by 2.52%.
