The Nov. 5 US presidential election, the Federal Reserve’s interest rate decision, foreign investor trading activity and upcoming quarterly earnings from domestic firms are the major triggers that would influence stock market sentiment this week, analysts said.

In an eventful week ahead, a slew of macroeconomic data announcements and global trends will also drive markets, experts said. “Next week is set to be eventful on the global front.

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,” said Santosh Meena, head of research, Swastika Investmart Ltd.

Domestically, the final phase of Q2 earnings will be critical, while the behavior of foreign institutional investors (FIIs) will remain under close watch, Meena added.

“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,” said Palka Arora Chopra, director, Master Capital Services Ltd.

Top stock exchanges BVB and NSE organized a special one-hour ‘Muhurat Trading’ session on the occasion of Diwali on November 1, marking the beginning of the new Samvat 2081.
Last week, the BVB reference index rose by 321.83 points, or 0.40%.

“This week, investors’ attention will focus on developments in US markets, particularly the upcoming November 5 election and the Federal Reserve’s policy meeting,” said Ajit Mishra — SVP, Research, Religare Broking Ltd.

“On the domestic front, earnings reports of key companies including Dr Reddy’s, Titan, Tata Steel, M&M and Tata Motors will be in focus. Additionally, the release of key economic indicators such as the HSBC Manufacturing PMI and Services PMI will provide insight into the country’s economic momentum,” Mishra said.

Relentless selling by FIIs last month contributed enormously to the benchmark indices falling over 7% from their all-time highs.

“Global markets will respond to the US presidential election for a few days, after which fundamentals such as US GDP growth, inflation and Fed rate cuts will influence market movements,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.