Fed, RBI meeting and Q2 earnings among top 8 factors to dictate Dalal Street mood this week

“We have two important events viz. US Fed meet and a special MPC monetary policy review meet scheduled during the week. Besides, important high-frequency data i.e. auto sales will also be in focus,” said Ajit Mishra, VP – Research,

Broking.

Here’s breaking down the key events that would decide the fate of Nifty bulls this week:

1)
Fed meet

The US Fed is expected to raise interest rates by 75 basis points for the fourth consecutive time on Wednesday. “The main headliner globally would be the FOMC meeting and press conference. As the Fed has aggressively hiked interest rates this year, market participants would be interested to know whether the pace now slows down,” said Apurva Sheth, Head of Research, Samco Securities.

2)
RBI meet

The Reserve Bank of India (RBI) has called for an additional meeting of the Monetary Policy Committee on November Market participants would be closely tracking RBI Governor Shaktikanta Das’ statement around inflation.

3)
Earnings season

As the earnings season gains pace, prominent companies like , L&T, , , , , and will unveil their numbers along with several others during the week.

4)
BoE decision

With British inflation running above 10%, the Bank of England is set to hike interest rates by 75 basis points, the most in the last 33 years, on November 3.

5)
Macro print

India will release its September fiscal deficit numbers on Oct 31, followed by the manufacturing data the day after. Investors would also closely monitor the US initial jobless claims data, unemployment rate, and ISM Non-Manufacturing PMI that are slated to release this week.

6)
FII flow

The outflow of money from stock exchanges by foreign institutional investors or FIIs has been slowing down. On Monday, FIIs were net buyers on Dalal Street to the tune of Rs 1,569 crore. However, they remain net sellers in the month of October so far.

7)
Auto sales

Automobile companies will start releasing their monthly sales numbers from November 1, 2022 which will lead to stock-specific action. “Auto stocks have outperformed over the last couple of months and they will continue to dominate going forward in the future,” Gaurang Shah, Sr Vice President at

, said.

8)
Technical factors

Technical analysts expect the index to maintain a positive tone till it manages to hold 17,400 and inch gradually toward the 18,100 zone. “We feel banking might take a breather around its record high and other sectors would fill in on a rotational basis. Traders should continue with the buy on dips approach with a focus on overnight risk management,” said Mishra of Religare Broking.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)