RBI Policy And TCS Earnings In Focus, Oil Prices And Bond Yields To Guide Markets
RBI policy, TCS earnings, oil prices and global bond yields will guide markets this week as investors track foreign flows after eight straight weeks of losses for Indian equities.
RBI policy, TCS earnings, oil prices and global bond yields will guide markets this week. |
New Delhi: The Reserve Bank of India’s interest rate decision, corporate earnings, crude oil prices and global bond yields will shape stock market trading this week, analysts said.
Investors will also track economic data and foreign fund flows after Indian equities recorded their eighth consecutive weekly decline.
RBI policy in focus
The RBI’s policy announcement will be the main domestic trigger. Investors will watch its stance on interest rates, inflation assessment and growth forecasts for signals on the outlook for financial markets.
Ajit Mishra, SVP, Research, at Religare Broking, said the meeting would offer important guidance on the likely direction of domestic interest rates.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said US Federal Open Market Committee minutes would show policymakers’ support for further tightening after September’s rate increase.
Earnings season begins
Quarterly results will return to the spotlight, with TCS and retail major DMart among the companies scheduled to report earnings this week.
TCS will announce its September quarter results on October 8. India’s final HSBC Services PMI and Composite PMI readings for September are due on October 6, Mishra said.
Oil and yields matter
Ponmudi R, CEO of Enrich Money, said Brent crude above USD 100 a barrel remained an immediate concern, putting pressure on India’s external balances and inflation outlook.
Geopolitical uncertainty could keep oil prices elevated, adding to concerns for investors already facing a weak rupee and persistent foreign selling.
Lower US Treasury yields could support emerging markets and ease pressure on foreign investment flows. Higher yields, however, could make US assets more attractive and encourage further outflows, he said.
Markets extend losses
Last week, the Sensex dropped 1,986.04 points, or 2.68 per cent, while the Nifty lost 718.55 points, or 3.10 percent.
During September, the Sensex declined 4,476.98 points, or 5.81 per cent, and the Nifty fell 1,459.95 points, or 6 per cent, reflecting sustained pressure from domestic and global concerns on sentiment.
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