Market Ahead,November 4: Top factors that could guide markets this week

Market participants will eye domestic factors to steer through the trade this week. 

On Friday, the S&P BSE Sensex added 36 points to settle at 40,165 levels. On the NSE, the broader Nifty50 index ended at 11,899.50, up 22 points.

Corporate earnings: HDFC, Tech Mahindra, Punjab National Bank, Dabur, and Eicher Motors are among over 650 companies scheduled to announce their September quarter earnings this week.

On Monday, HDFC is slated to report its numbers amid expectations of net profit up to Rs 3,628 crore supported by gains from stake sale in Gruh Finance. It may, however, see a decline in credit growth due to slowdown in the real estate sector, according to analysts. 

On Friday, YES Bank posted its second-biggest quarterly loss of Rs 600.08 crore due to a one-off DTA adjustment of Rs 709 crore on account of change in corporate tax rate regime. 

Macro data: Investors would eye services PMI data for October month slated to be released on Tuesday, November 5. Besides, foreign exchange reserves for week ended November 1, and bank loan and deposits growth for the fortnight ended October 25 will be announced on November 8. 

US-China trade deal: Progress in US-China trade negotiations could affect investor sentiment. US commerce secretary Wilbur Ross said on Sunday that he was “quite optimistic” that remaining points in the first phase of the trade deal could be resolved soon, adding that the countries’ leaders still planned to meet later this month. 

FPI/DII inflow: Overseas investors pumped in a net Rs 16,464 crore into the Indian capital markets in October amid positive domestic and global cues. Inflow remained positive for the second straight month.

Global cues: Asian shares rose to 14-week highs on Monday as growing optimism over US-China trade talks and upbeat US job data boosted global investors’ appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan and Australian shares were up 0.2 per cent each in early trade, while Seoul's Kospi added 0.9 per cent. Markets in Japan were closed for a holiday.

In the commodities market, oil prices, which had surged on hopes for a US-China trade deal, were a shade lower on Monday. Global benchmark Brent crude was off 0.10 per cent at $61.63 per barrel.