The market is anticipated to maintain a consolidative stance next week, with efforts to recover alongside a decrease in volatility. Market participants will direct their attention towards the earnings reports for the September quarter, the Hyundai Motor India IPO, US retail sales figures, the European Central Bank’s interest rate decision, China’s third-quarter GDP, and fluctuations in oil prices.
The market has transitioned into a consolidation phase, experiencing a moderate decline in the week ending October 11, driven by concerns regarding valuations, a lackluster forecast for Q2FY25 earnings, the BJP’s victory in the Haryana elections, and ongoing selling by foreign institutional investors. This follows a significant correction of 4.5 percent observed in the preceding week. Additionally, the Reserve Bank of India’s recent policy adjustments do not suggest an imminent rate cut.
In the week commencing October 14, the market is anticipated to maintain a consolidative stance while attempting to recover amid a decrease in volatility. Market participants will direct their attention towards the earnings reports for the September quarter, particularly from major players such as Reliance Industries, Infosys, and HDFC Bank. Additionally, they will monitor Hyundai’s significant IPO from its Indian division, US retail sales figures, the European Central Bank’s interest rate decision, China’s third-quarter GDP, and fluctuations in oil prices.
The BSE Sensex experienced a decline of 0.4 percent, settling at 81,381, while the Nifty 50 decreased by 0.2 percent to 24,964. In contrast, the broader market indices demonstrated stronger performance, with both the Nifty Midcap 100 and Smallcap 100 indices rising by 1.3 percent each.
Siddhartha Khemka, Head of Research in Wealth Management at Motilal Oswal Financial Services, anticipates that the markets will consolidate at elevated levels, influenced by global developments and the ongoing earnings season.
The outlook for the second quarter results indicates a weaker performance compared to the previous quarter. Vinod Nair, Head of Research at Geojit Financial Services, noted that the likelihood of downgrades is increasing, which may lead to a reduction in India’s premium valuation in the short to medium term.