In the second week of November, investors will be closely observing several stock market triggers, which include the ongoing release of second-quarter results for the current fiscal year (Q2FY24), domestic and global macroeconomic data, foreign capital inflow, and global market cues. After a two-week losing streak, domestic equity benchmarks rebounded and gained nearly 1% in the previous week. This rebound was supported by the US Federal Reserve’s decision to pause interest rate hikes, leading to a global rise in equities and a significant correction in US bond yields. The market started the week cautiously due to uncertainty surrounding the US Fed’s policy meeting, but as the week progressed, the apprehension dissipated, and market sentiment improved. A modest decline in oil prices also contributed to the positive sentiment, raising hopes of a potential pause in Fed actions.
On Friday, both Nifty 50 and Sensex closed higher for the second consecutive session, driven by positive global cues and improved investor risk appetite. Nifty 50 closed at 19,230.60, up 97 points (0.51%), and Sensex closed at 64,363.78, up 283 points (0.44%). In the broader market, the BSE small-cap index increased by 0.94%, and the mid-cap index rose by 0.71%. Overall, the BSE benchmark gained 580.98 points (0.91%), and the Nifty climbed 183.35 points (0.96%). Analysts highlighted factors such as healthy earnings, easing inflation, steady demand, and a stable interest rate outlook as drivers of growth in domestic markets. Additionally, investors are showing interest in the market due to some valuation comfort following a recent correction.
The market received a boost from stable domestic macroeconomic PMI and robust corporate earnings from domestic companies. These positive factors helped the market recover from its initial losses during the week. The auto sector faced challenges despite positive auto sales figures, while the mid and small-cap sectors demonstrated noteworthy performance, driven by strong demand and a favorable economic outlook. Going forward, a busy week awaits the primary market as four new initial public offerings (IPOs) are slated across mainboard and small-and-medium enterprises (SME) segments. The week will be crucial from the domestic and technical point of view as investors will closely eye the ongoing Q2FY24 results along with key domestic and global events. Overall, analysts believe that markets will be able to sustain an upward movement if global cues continue to remain positive.
Geopolitical risks persist due to the Israel-Hamas war, but so far, it has had limited impact on the market movement. Investors will be busy analyzing corporate earnings in the coming week with the growing momentum of Q2FY24 results. However, markets will begin the week by reacting to the September quarter results of State Bank of India (SBI), Vedanta, IndiGo, Zomato, Bank of Baroda, UCO Bank, JSW Infrastructure, among a few others on Monday as these companies declared their quarterly results during the weekend or post-market hours on Friday.