stock markets The direction of this will be decided by the activities of foreign investors, global trend and quarterly results of companies during this week of short trading session. Analysts have expressed their opinion that due to the settlement of monthly derivatives contracts, the market may see some further decline. There was a big fall in the market last week due to huge withdrawal of foreign funds and poor second quarter results of the companies. An expert said the market's weak trend may continue in the near term as investors remain cautious ahead of the US presidential election early next month. Stock markets will remain closed on Friday on the occasion of Diwali, but there will be special Muhurta trading for one hour in the evening. Major stock exchanges BSE and NSE will conduct special one-hour 'Muhurat trading' on November 1 on the occasion of Diwali, which marks the beginning of the new Samvat 2081.
Expected market fluctuations
Vinod Nair, head of research at Geojit Financial Services, said, “We expect the market to continue to fall in the short term. The change in this stance will depend on the pace of FII selling slowing down and the results of the US presidential elections. Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “Going forward, FII inflows will be important in determining the direction of the market. Will play a role, while the market is expected to remain volatile due to October futures and options settlement. Right now the second quarter results season is going on. In such a situation, the upcoming quarterly results will play an important role in giving direction to the market.'' He said that geopolitical developments on the global front, especially the Iran-Israel conflict and its impact on crude oil prices, will be important for the direction of the market.
Investors keep an eye on the US presidential election
Meena said, “Markets around the world may adopt a cautious and wait attitude before the US presidential elections.” Important data such as US employment data, GDP data, China's PMI manufacturing data will be important indicators for the market. America's main PCE price index will be released on October 31, on the basis of which the US central bank estimates inflation. Apart from this, Bank of Japan is also going to announce its interest rate decision on October 31. This week Adani Power, BHEL, Adani Enterprises, Adani Ports and Dabur India will announce their quarterly results.
For this reason foreign investors are withdrawing money
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “The FPI selloff that started in early October is continuing and there is no sign of a reversal in the trend yet. FPI selling has started after China announced stimulus measures. Apart from this, the valuation of Chinese shares is also low. FPIs remain sellers due to high valuation of shares in India. Vijayakumar said that the market sentiment has been affected by the selling of FPIs and Nifty has fallen eight percent from its peak level.
Nifty fell 8% from record high
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