The US presidential election results, corporate earnings numbers as well as movement of the rupee and crude oil prices will drive the stock markets this week. The BSE and NSE will conduct a special 'Muhurat' trading session on Saturday, November 14, on the occasion of Diwali. Investors will rejoice Democrat Joe Biden's US presidential election win as India is likely to benefit from improved relations with the US as both countries attempt to neutralise the rising power of China.
Last week, the Indian markets were buoyant, with both the 30-share BSE Sensex and the 50-share Nifty rising 2,278 points or 5.75 per cent, and 621 points or 5.34 per cent, respectively. Nine out of the 10 most valued companies added Rs 2.30 lakh crore to their combined market capitalisation last week, with HDFC twins (HDFC Ltd and HDFC Bank) leading the pack. Given the sustained rally, the market may log new high this week.
Here are key factors that will impact Indian stock market this week:
US election results: Market participants will react to US presidential election results in which Democratic presidential nominee Joe Biden defeated Republican incumbents Donald Trump in a close- contest. According to a report by Axis Asset Management, regardless of who wins in the US elections, investors should be careful not to make investment decisions solely based on the polls verdict. On average, there is very little difference in long-term equity returns whether the Republicans or Democrats are in power, it said.
Gland Pharma IPO: Hyderabad-based Gland Pharma, backed by Chinese firm Fosun Pharma, will launch its initial public offering (IPO) from November 9-11 (Monday-Wednesday). The Rs 6,500 crore IPO, which comprises of fresh issue and offer for sale, has price band of Rs 1,490-1,500 per share. Ahead of IPO, Gland Pharma has raised Rs 1,944 crore from anchor investors at the price of Rs 1,500 per equity share.
Corporate results: Traders will also keep a keen eye on the corporate earnings results scheduled this week for stock-specific moves. Companies such as Coal India, Indiabulls Housing Finance, IRCTC, Oil India, Hindalco, Gail (India), Tata Power, Bata India and others will announce their quarterly earnings in the week.
Foreign fund flow, rupee and oil price movement: Investors will also monitor the foreign fund flow, rupee movement against US dollar, and oil price movement. These factors will also set tone for the domestic bourses.
Muhurat trading: Indian stock exchanges, BSE and NSE, will conduct a special one-hour Diwali muhurat trading on Saturday (November 14), starting 6:15 pm. The special trading session marks the beginning of a new Samvat - the Hindu calendar year that starts on Diwali - and it is believed that Muhurat Trading brings prosperity and wealth throughout the year.
COVID-19 cases: Development on coronavirus front will be keenly watched as second wave of infections may force government to review contentment measures. India's COVID-19 tally crossed 85 lakh, while the number of people who have recuperated from the disease surged to 78,68,968, pushing the national recovery rate to 92.49 per cent, according to the Union Health Ministry data updated on Sunday. The death toll climbed to 1,26,121 with 559 new fatalities, the data updated at 8 am showed.
Macro data: Investors will keep an eye on the Consumer Price Index (CPI) and Index of Industrial Production (IIP) for September, which are slated to be released on November 12.