Mumbai: Equity market sentiment in the upcoming holiday-shortened week will be guided by global developments, foreign fund flows, and the ongoing corporate earnings season, analysts said. Both BSE and NSE will remain closed for regular trading on Tuesday due to Diwali, but a special Muhurat trading session will be conducted on October 21 between 1:45 pm and 2:45 pm, marking the beginning of Samvat 2082. Markets will also remain shut on Wednesday for Diwali Balipratipada.
Heavyweight earnings to set the tone
The truncated week will see investors reacting to quarterly results from major companies, including Reliance Industries, HDFC Bank, and ICICI Bank, which are likely to determine the broader market direction. According to Ajit Mishra, SVP - Research, Religare Broking Ltd, the event-heavy week will keep traders on their toes as earnings from sectoral leaders continue to roll in.
“The Q2 FY26 earnings season will remain in focus with key updates expected from Colgate, Hindustan Unilever, Dr Reddy’s Laboratories, and SBI Life Insurance,” Mishra added.
FPIs turn buyers after three months
After consistent outflows over the past three months, foreign portfolio investors (FPIs) have turned net buyers, infusing nearly Rs 6,480 crore into Indian equities so far in October. The rebound in FPI inflows is being attributed to strong domestic macroeconomic indicators and improving global risk sentiment.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said that upcoming results from FMCG and pharma majors will be key sentiment drivers. “Any relief in US-China trade tensions could further boost investor mood,” he added.
Markets remain resilient despite global headwinds
Indian equities ended last week on a strong note, with the Sensex climbing 1,451.37 points (1.75%) and the Nifty advancing 424.5 points (1.67%).
Ponmudi R, CEO of Enrich Money, noted that domestic markets have shown remarkable resilience despite global volatility arising from renewed trade tensions, US banking stress, and commodity fluctuations. “The strong liquidity and unwavering investor confidence have helped Indian markets scale fresh 52-week highs,” he said.
