In the week gone by, equity markets displayed strong resilience even as global cues remained wobbly. The US Federal Reserve hiked interest rates by 75 basis points, taking the benchmark rates to 3.75 – 4 per cent, the highest since January 2008.
Fed chairman Jerome Powell sounded hawkish on future rate trajectory, and said that the central bank still has way to go before it wraps up its tightening campaign.
A day later, Bank of England too raised benchmark rates by 75 basis points to 3 per cent, highest in the last 30 years.
The central bank warned the UK would face a “very challenging” two-year slump with unemployment nearly doubling by 2025.
Yet, the global dilemmas failed to dent domestic equities. Strong Q2 performance by select companies and renewed buying interest by foreign funds lent support to the markets.
Eventually, among key benchmark indices…
The S&P BSE Sensex 30 index gained 1.7 per cent at 60,950. The NSE Nifty 50 topped the 18,000-mark for the first time since mid-September and ended 1.9 per cent higher. The BSE Midcap and Smallcap indices also settled with solid gains of 2.4 per cent and 1.5 per cent, respectively.
Going into this holiday-truncated week, traders and investors will focus on macro-economic data, apart from the quarterly earnings, for further cues. That said, the markets will remain closed on Tuesday, November 8, on account of Gurunanak Jayanti. At the global level, however, the US mid-term polls scheduled for November 8 will be on investors’ radar.
According to Business Standard, Arun Chulani, Co-Founder, First Water Capital Fund says, investors should watch out for US and India macro-eco numbers. Positive on overall markets for long-term. He says, sectors linked to China plus one theme to benefit
The government will announce IIP and manufacturing production data for September 2022 on Friday. According to forecasts by Trading Economics, an independent data analytical firm, IIP and manufacturing production data may see contraction of 2.3 per cent and 2.0 per cent, after a 0.8 per cent and 0.7 per cent de-growth in the preceding month.
On the earnings front, Q2 results season will enter its last leg this week, with as many as 1,468 companies scheduled to announce their September quarter results. Prominent among these are – BPCL, Coal India, Paytm, PolicyBazaar, Lupin, Tata Motors, Ashok Leyland, GNFC, SAIL, Zomato, Hindalco, Mahindra & Mahindra, Zee Entertainment and Aurobindo Pharma.
Action in the primary market shall continue this week, with Monday being the final day for the subscription of Bikaji Foods International and Global Heath.
Besides, three more initial public offerings —Archean Chemicals Industries, Five Star Business Finance Ltd and Kaynes Technology India—will hit the markets this week to cumulatively raise around Rs 4,280 crore.
 "Will the markets consolidate in this holiday-truncated week?")
