Week Ahead: Q2 earnings, US election results, IPO action, FII activity, US Fed policy, among key market triggers

Market Outlook Weekly Update

Welcome Message

Tamilini: Welcome to Parkvai Finance, your trusted source for financial news and market insights. I'm Tamilini, and joining me is Akshita. Let's dive into this week's market outlook.

Market Overview

Akshita: Thank you, Tamilini. It's been a volatile week for the Indian equity markets, influenced by significant global events. The outcome of the US presidential elections initially boosted global market sentiments, but the rally was short-lived for the Indian market. The benchmark indices, Nifty and Sensex, closed the week lower by 0.6% and 0.3% respectively.

Broader Market Impact

Tamilini: Broader markets were more impacted, with BSE Midcap and Smallcap indices falling by 0.4% and 1.3% respectively. In the US, small companies with a domestic focus saw a significant rally as President Trump proposed corporate tax rate cuts to boost profitability. This led to a spike in the Russell 2000 index, which hit an all-time high during the week.

Federal Reserve Update

Akshita: Another key event was the Fed's decision to cut the benchmark interest rate by 25 basis points to 4.50%-4.75%, which was widely expected. Fed Chair Jerome Powell mentioned that inflation has eased significantly over the past two years and is closer to the long-run target of 2%, although core inflation remains elevated. The market anticipates a total of another 175 basis points rate cut by 2026.

Market Reaction

Tamilini: The US markets digested this event well, but the Indian market showed no major reaction, continuing to see profit booking on Friday. Meanwhile, China's NPC meeting concluded with the announcement of a major debt refinancing plan, raising the local debt ceiling to 35.52 trillion yuan. However, this move is seen as insufficient to revive the current economic slowdown in China.

Corporate Earnings

Akshita: Domestic corporate earnings have been mostly on the lower side so far, raising valuation concerns for the Indian market. On the sectoral front, except for IT and Consumer Durables, all other sectoral indices closed negative on BSE for the week, with Realty and Power losing the most.

Cash Market Activity

Tamilini: In the cash market, FIIs net sold Rs 21,962 crore while DIIs net bought Rs 14,392 crore during the week. Looking ahead, the Indian market will track key domestic data such as CPI/WPI for October and IIP/manufacturing data for September. Result-driven stock-specific reactions will also continue amid the ongoing result season.

US Market Focus

Akshita: In the US, October's CPI/PPI data, retail sales, and initial jobless claims for the week ending November 9th will be in focus. Technically, the zone of 23,850-23,800 will act as immediate support for the index. If the index slips below 23,800, then the 200-day EMA, currently placed at 23,532, will act as the next important support.

Technical Levels

Tamilini: On the upside, the zone of 24,500-24,550 will act as a crucial hurdle for the index. Any sustainable move above 24,550 will lead to a sharp upside rally in the index up to the level of 24,900 in the short term.

Corporate News

Akshita: Now, let's take a look at some corporate news that made headlines this week:

• Tamilini: Mahanagar Gas has announced a joint venture with US-based International Battery to produce and sell battery cells in India. The company will acquire over 40% stake in the venture for Rs 230 crore.

• Akshita: Oil India has become the preferred bidder for phosphate, graphite, and vanadium blocks in Arunachal Pradesh.

• Tamilini: Borosil Renewables is set to benefit from the government's anti-dumping investigation into solar glass imports from China and Vietnam, with a provisional anti-dumping duty recommended to protect domestic manufacturers.

• Akshita: UltraTech Cement has acquired an additional 11.6% stake in its UAE-based unit, Ras Al Khaimah, for USD 22.02 million.

• Tamilini: Polycab India has emerged as the lowest bidder for a Rs 1,550 crore project from BSNL.

• Akshita: NTPC's board has approved significant investments for Phase II of the Telangana power project and Stage II of the Nabinagar power project, amounting to Rs 29,345 crore and Rs 29,948 crore respectively.

• Tamilini: Hero Motocorp is set to enter the European market with the launch of its new electric scooter, the VIDA Z, and plans to expand its range to high-capacity premium internal combustion engine motorcycles.

• Akshita: Hindustan Zinc has become the preferred bidder for tungsten blocks in Andhra Pradesh and Tamil Nadu.

• Tamilini: Steel Strips Wheels has announced the launch of its new aluminum steering knuckle with commercial production.

• Akshita: Maruti Suzuki has launched its first electric car, the e-Vitara, in Milan.

• Tamilini: Premier Energies' subsidiaries have secured orders totaling Rs 560 crore from two major independent power producers.

• Akshita: Brigade Enterprise has signed a joint development pact to develop a 1 million sq ft residential apartment project in Chennai, with an expected gross development value of Rs 800 crore.

Closing Remarks

Tamilini: That's all for this week's market outlook and corporate news update. Thank you for tuning in to Parkvai Finance. Don't forget to like, share, and subscribe for more updates. Until next time, stay informed and invest wisely.

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