Market awaits US Prez poll results for future clues
NEW DELHI: Outcome of the US presidential election due this week, in addition to quarterly earnings from bluechips like ICICI Bank and SBI, will have a strong bearing on the market direction, say experts.
Opinion polls indicated that the race may go down to the wire as Republican Donald Trump and Democrat Hillary Clinton are locked in a tight fight for the top job.
Also, up next are industrial production (IIP) data for September, which are due on Friday.
“Global sentiment will continue to dominate market sentiment this week. Outcome of the US presidential election will have a bearing on global stocks, including India’s. The polls show that it could be nail-bitingly close,” said Vijay Singhania, founder-director, Trade Smart Online.
“For the next few weeks, we expect the index to trade in a range, given the uncertainties around the US elections.
Besides the US vote, local investors are looking at company earnings for signs of economic growth filtering through to profits,” he added.
Stock-specific action will be seen in ICICI Bank, SBI, Bharat Heavy Electricals, Lupin, BPCL and Mahindra & Mahindra as they get ready to announce second quarter earnings this week.
“Going ahead, the much- discussed event (the presidential poll), which has been sending ripples and nervousness on the Street of late is scheduled for November 8,” said Abnish Kumar Sudhanshu, Director and Research Head, Amrapali Aadya Trading and Investments.
“Overall, the market looks very choppy and is most likely to be driven by global factors rather than domestic ones. We expect the market to dance to the tune of the US presidential election and behave the way the global indices do.”
Over the last week, the first of the new Samvat Year 2073, the Sensex and Nifty both recorded losses by plunging 667.36 points, or 2.38 per cent, and 204.25 points, or 0.36 per cent, respectively.
“The outcome of an important event in the US has global repercussions and therefore, the market will wait and watch before moving substantially in either direction,” said Jimeet Modi, CEO, SAMCO Securities.