Blitz Bureau
NEW DELHI: As the second quarter (Q2) earnings season almost gets over, domestic indicators such as services PMI, infrastructure output data and NDA’s government formation in Bihar post landslide victory will drive the market sentiment next week, according to market watchers on November 16. Globally, market mood will be shaped by key U.S. economic releases, including the minutes of the latest FOMC meeting.
“Additionally, the ongoing volatility in AI-linked stocks will remain a key factor to watch, given its potential to influence broader market sentiment,” said Ajit Mishra of Religare Broking. This week, the domestic indices staged a strong rebound during the week, ending firmly in the green after the recent phase of weakness.
Despite volatility in the later sessions, which was mostly caused by conflicting global developments, sentiment was positive from the beginning and was bolstered by positive domestic cues. With the help of lower GST rates and falling food prices, India’s retail inflation dropped precipitously from 1.44 per cent in September to 0.25 percent in October, which greatly boosted investor confidence.
Because of lower prices for non-food items and softer crude oil, wholesale inflation also fell into negative territory in October, falling 1.21%. “Additional support came from strong macro indicators, including a 7 per cent YoY rise in net direct tax collections to over Rs 12.92 lakh crore, reflecting healthy corporate profitability and steady income growth,” Mishra said. Expectations of an NDA win in the Bihar elections also helped boost political sentiment and increase risk appetite in general.
