Fed interest rate decision, macroeconomic data, Q2 earnings to dictate market trends this week: Analysts

The US Federal Reserve's interest rate decision, global cues, macroeconomic data announcements and the ongoing quarterly earnings are the major triggers that will dictate trends in stock markets this week, analysts said. Besides, the trading activity of foreign investors and the movement of global oil benchmark Brent crude will also be tracked. "All eyes are on the outcome of the US Federal Reserve meeting scheduled for November 1, particularly due to the multi-year high levels of the US bond yields. Additionally, the policy decisions of the Bank of Japan will be closely watched. "Beyond these key events, global factors will also play a crucial role. Economic data releases from the US and China, as well as the ever-changing geopolitical situation, will influence market sentiment," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Among firms to announce their earnings this week are Adani Green Energy, DLF, TVS Motor Company, Bharti Airtel, GAIL, Hero MotoCorp, Tata Steel, Adani Enterprises, Tata Motors, InterGlobe Aviation andF.

On the home front, there will be a flurry of Q2 corporate earnings reports, providing valuable insights into the financial health of domestic companies. Monthly auto sales figures are expected to draw attention, particularly because they will reflect the demand during the Dussehra festival season, he added. "Market will react to major domestic and global economic events such as India's S&P Global manufacturing and services PMI (Purchasing Managers' Index), China manufacturing and non-manufacturing PMI, Eurozone inflation and GDP data, crude oil inventories, UK manufacturing PMI, US manufacturing and services PMI, initial jobless claims, non-farm payrolls, unemployment rate and the Fed interest rate decision," Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said.

In a holiday-shortened last week, the BSE benchmark tanked 1,614.82 points or 2.46 per cent. Continuous weakness on the global front is weighing on the sentiment, Ajit Mishra, SVP - Technical Research, Religare Broking Ltd, said. Equity benchmark indices Sensex and Nifty on Friday reversed their six-session losing streak and rebounded more than 1 per cent. "Despite the strong rebound, we suspect the benchmarks are not out of the woods yet. For markets to remain buoyant, some resolution is needed between the ongoing Israel-Hamas war," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.