Markets Week Ahead: Will Sensex, Nifty 50 continue their winning spree?

On Friday, the Sensex closed 104.25 points or 0.18% higher at 59,307.15, while the Nifty 50 gained 12.35 points or 0.07% to end at 17,576.30. Giants like Axis Bank, ICICI BankHUL and Kotak Bank were the top performers on account of their Q2 results.

In terms of sectoral index, BSE Bankex rose nearly 949 points, while Bank Nifty rose over 684 points on October 21.

meanwhile, Rupee Treasury yields edged higher against the US dollar amid firm domestic equities and a sustained jump in treasury yields coupled with RBI intervention. On Friday, the rupee had lost 83 points to close at Rs 82.6750 per dollar. Over the past six weeks, the domestic currency has lost nearly 4% against the greenback.

On the other hand, having a bearish appetite for equities, FII In the last two trading sessions of this week, October 20 became net buyers with the most buying. FII boom on October 21 438.89 crore in equity, while on October 20 – investment was on the tune of 1,864.79 crore. FIIs were selling shares during October 17-19 979.34 crores.

Since last week, the Sensex gained 1,387 points or over 2.4%, while the Nifty 50 gained nearly 391 points or 2.3%, respectively, in the week between October 17-21. Compared to the previous week, the market cap of the firms listed on the BSE jumped higher 4.13 lakh crore in the week ending October 21, 2022 274.42 lakh crores. market cap was approx 270.29 lakh crore by the end of October 14 last week.

Vinod Nair, Head of Research, Geojit Financial Services, said, “Despite global vulnerabilities, the domestic sentiment was positive ahead of Diwali and the market showed its resilience, supported by a good start to the earnings season. Benchmark indices have been rising for the past. Six sessions aided by stock-specific momentum in IT, banks and FMCG. Credit growth to October hit a 10-year high of 17.94% YoY with a gain of 3.8% added color to Bank Nifty, while PSU Banks for the week increased by 11% during the

What to expect in the market week from October 24-28?

Trading in equities, derivatives, commodities and other securities will remain closed on October 24 on account of Lakshmi Pujan (Main Diwali) and on October 26 on account of Diwali Balipratipada festival. Due to which trading will be allowed only on 25, 27 and 28 October. However, on October 24, from 6.15 pm to 7.15 pm, the markets will open for one hour. Muhurta Trading,

According to Nair, the week-end also witnessed some profit-booking as domestic investors maintained their cautious approach ahead of the short week. On the global front, UK inflation rose to a 40-year high of 10.1% in September, adding to fears of a more aggressive monetary policy by the central bank. As there are no major triggers for the next week, the market direction will be based on global sentiment and earnings season.

Further, Mitul Shah, Head of Research at Reliance Securities said, “The Indian rupee crossed the 83 per dollar mark for the first time, due to rising demand for dollars from fuel companies and widening current account deficit. Strengthening bond yields contributed to the weakness. The Indian rupee has fallen ~12% against the dollar so far this year. Markets fear further rate hikes by the US Fed could tighten US Treasury yields again Rupee may weaken further.

Further, Shah said, “Earnings season for 2QFY23 witnessed healthy revenue growth so far, but higher inflationary pressures impacted profitability. So far 120/BSE500 companies’ revenue grew 23%, in EBITDA increased by 15%, while PAT was largely flat on YoY basis.”

Shah said, “Inflation in both the domestic and US economies remains stable. India’s growth remains strong and is expected to be one of the fastest growing economies in the world, while a global slowdown and growth slowdown in major economies.” Markets look forward to US Fed monetary policy meeting scheduled for November 2. Comment on festive demand, inflation outlook and rate hike will be watched keenly in the near term.”

Some of the major Q2 earnings to watch in the week of October 24-28 are – Dabur, Tata Chemicals, Indus Tower, SBI Card, REC, and PNB Housing Finance.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.