FPI trades, Q2 results to shape market trend

MUMBAI: Trading activities by foreign funds, quarterly earnings by a host of blue chip companies and Waaree Energies’ listing are the top factors that would drive the market in the new week.

Market players will also closely monitor crude oil price movements due to geopolitical tensions in West Asia, as well as how the rupee trades against other major currencies. The uncertainty regarding the outcome of the US presidential elections will also weigh on market sentiment, analysts and dealers said.

The week’s trading would be truncated by Diwali holiday on Friday when there will be shortened, special sessions on both the BSE and NSE.

So far in the month, foreign funds have net taken out nearly Rs 90,000 crore from the secondary market alone. Although domestic funds have net infused about Rs 1.1 lakh crore worth of funds, these institutions have not been able to cushion the impact of foreign funds’ selloff on leading indices. As a result, the sensex and Nifty have both lost nearly 6% in Oct.

In the new week, too, foreign funds are likely to be the trend deciders. Foreign portfolio investors “are likely to continue their selling in the near-term since market sentiment has turned weak due to escalation of tensions in West Asia and the uncertainty regarding the outcome of the US presidential elections,” V K Vijayakumar, chief investment strategist at Geojit Financial Services, said.

During the week, leading companies including Bharti Airtel, Adani Power, Ambuja Cements and Sun Pharma are set to announce their July-Sept quarterly numbers. Overall quarterly results thus far have been muted, which has affected investor sentiment, market players said.

The listing of Waaree Energies — that created a new record for the number of applications at over 97 lakh — on Monday would also have an impact on trading sentiment on Dalal Street, market players said.