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US presidential election, Fed rate decision to influence investors

Online Niel November 3, 2024

Stock values next week will be affected by the US presidential election, the Fed’s interest rate decision and the trading outlook of foreign investors, analysts noted. Experts said that corporate earnings from domestic companies will also have an effect on market sentiment.

The US presidential election is scheduled for this week on November 5th. In addition, the Federal Reserve is due to hold a meeting to decide future monetary policy. Additionally, global trends will be closely watched by market participants, PTI reported.

Elaborating on the week ahead, Santosh Meena, Head of Research, Swastika Investmart Ltd noted, “Next week is set to be eventful globally. The US presidential election on November 5 is a key point, and the US FOMC (Federal Open Market Committee) meeting will be crucial. Geopolitical tensions and oil price movements will also remain key variables.”

Meena pointed out that the week will include the final round of second-quarter earnings. Palka Arora Chopra, director, Master Capital Services Ltd, said more macro numbers will be revealed later in the week.

“The market outlook will be guided by the US presidential election and major macroeconomic data such as HSBC India Manufacturing PMI, Services PMI, US Fed interest rate decision, US S&P Global Composite PMI, S&P Global Services PMI from the US and BoE (Bank of England) interest rate decision,” Chopra said.

Remarkably, the stock market had a good rally last week. The benchmark BSE Sensex rose 321.83 points or 0.40%. The stock exchanges also organized a special one-hour ‘Muhurat Trading’ session to celebrate the festival of Diwali on November 1. This also signaled the beginning of the new Samvat 2081.

Ajit Mishra, SVP, Research, Religare Broking Ltd, explained: “This week, investors’ attention will focus on developments in the US markets, particularly the upcoming elections on November 5 and the Federal Reserve’s policy meeting. On the domestic front, earnings reports from key companies including Dr Reddy’s, Titan, Tata Steel, M&M and Tata Motors will be in focus. In addition, the release of key economic indicators such as the HSBC Manufacturing PMI and Services PMI will provide insight into the country’s economic momentum.”