Market week ahead: Israel-Hamas war, crude oil price, Q2 earnings and global trends to impact markets

The Israel-Hamas war will prompt investors to keenly eye the Middle-East for trading activity among foreign investors, as per the report.

Close monitoring

Pravesh Gour, Senior Technical Analyst at Swastika Investmart noted that the global markets are “currently fragile due to heightened attention on the rising US bond yield, global economic uncertainty, and also the geopolitical situation”. 

He added that investors will closely monitor these factors as “they have the potential to influence market sentiment”. Crude oil prices, Rupee movement against the Dollar, and investments by domestic institutional investors (DIIs) and foreign institutional investors (FIIs) during results season are other key factors monitored, according to Gour. 

Volatile trends

The monthly derivates end on October 26 (Thursday) and may prompt volatile trends in the markets, experts feel. 

“This week is a holiday-shortened one and we expect volatility to remain high due to the prevailing earnings season and scheduled expiry of October month derivatives contracts,” said Ajit Mishra, SVP – Technical Research at Religare Broking Ltd.

“The market will take further cues from the Israel-Palestine conflict. One should keep a watch on the earnings of major companies in India. Some major global and domestic events will be in focus such as the UK services PMI, US manufacturing and services PMI, US GDP, initial jobless claims, and crude oil inventories,” said Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd.

Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, said markets worldwide, including India, “will respond to geopolitical challenges, oil prices, and bond yield fluctuations, with continued stock-specific action tied to quarterly results”.

“We expect earnings season to pick up pace in a truncated week which would direct the market trend along with global cues. On the global front, ECB (European Central Bank) will announce interest rate decision this week,” according to Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd.

Results expected

Among the key results, Axis Bank, Bajaj Finserv, Maruti Suzuki India, and Tech Mahindra are set to announce financial numbers for the September quarter.

Asian Paints, BPCL, Canara Bank, PNB, and Reliance Industries will also announce their quarterly earnings during the week.

Last week, the BSE benchmark plunged 885.12 points or 1.33 percent and the Nifty declined 208.4 points or 1.05 percent.

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Updated: 22 Oct 2023, 01:22 PM IST