What Will Drive Indian Markets Next Week: Earnings Season, US Shutdown, or FOMC Minutes?

Synopsis
Key Takeaways
- Q2 earnings reports to begin next week.
- Tata Capital IPO opens soon, attracting attention.
- US government shutdown remains a concern for investors.
- FOMC minutes will reveal insights into interest rate discussions.
- Bank Nifty shows strength above the 20-week EMA.
Mumbai, Oct 5 (NationPress) The upcoming week is set to be pivotal for Indian stock markets, as several key factors such as Q2 earnings, the US government shutdown, the FOMC minutes, and other significant economic indicators are expected to shape market movements.
Starting next week, companies will commence disclosing their financial performance for the July-September quarter (Q2).
On October 9, Tata Consultancy Services (TCS) and Tata Elxsi are scheduled to unveil their results for the September quarter.
Additionally, the IPO market is poised to capture investors’ focus. The Tata Capital IPO is set to commence next week, alongside anticipated updates regarding the LG Electronics’ IPO, which may further impact market sentiment.
The minutes from the US Federal Open Market Committee (FOMC) will be released, offering in-depth insights into discussions from the meeting held on September 16–17 concerning interest rate decisions.
Global investors are monitoring the US government shutdown, which is likely to persist into next week due to ongoing funding disputes between Democrats and Republicans.
From a technical perspective, analysts noted that on the weekly timeframe, Bank Nifty remains solidly above the 20-week EMA, indicating sustained strength and supporting a broader bullish sentiment.
“Should selling pressure re-emerge and the index decisively dip below 55,140, further declines towards 55,000 and 53,832 (200-day EMA) may occur. Conversely, immediate resistance is positioned at 55,850, followed by 56,000 and 56,400,” analysts commented.
“On the daily timeframe, Nifty found robust support near the 24,600 range, bouncing back with two consecutive green candles, reflecting renewed buying interest and an upturn in sentiment,” they noted.
In the previous week, Indian stock markets demonstrated positive performance. The Nifty surged by 239 points, or 0.97 percent, closing at 24,894, while the Sensex increased by 780 points, or 0.97 percent, concluding at 81,207.
From September 29 to October 3, the Nifty PSU Bank index led the sectoral gains with a 4.43 percent rise, followed by Nifty Metal (up 3.93 percent), Nifty Private Bank (up 2.53 percent), Nifty Media (up 1.87 percent), and Nifty PSE (up 2.77 percent).
Additionally, there was noticeable buying interest in midcap and smallcap stocks. The Nifty Midcap 100 index rose by 1,124 points, or 2 percent, closing at 57,503, while the Nifty Smallcap 100 index advanced by 317 points, or 1.81 percent, settling at 17,787.