Earnings, US Fed meet and crude oil to steer markets this week as Jio Platforms lists

The stock market has been volatile of late. Crude oil prices have risen suddenly, and there are signs that this could deal the market a big blow. Which way Indian markets move this week will depend on companies' quarterly results and several other factors. Investors need to keep a close watch on them.

Analysts say the market's direction will hinge on quarterly results, the US Federal Reserve's decision on interest rates, the trend in crude oil prices and developments linked to West Asia. The listing of Jio Platforms, foreign investors' trading and the mood in global markets will also affect sentiment.

Ajit Mishra, senior vice president (research) at Religare Broking, said investors will watch the industrial production and manufacturing data for September, due on October 28.

Quarterly results will also play an important role in setting the market's direction. Companies including TVS Motor, Asian Paints, Trent, Sun Pharma, Bharat Electronics, Indian Oil, Bank of Baroda and GAIL India will announce their financial results this week.

According to Mishra, the US Federal Reserve's interest rate announcement on October 28 will be the most important event for world markets this week. To gauge where rates will go next, investors will closely examine the rate decision, the Fed's policy statement and officials' remarks.

Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said the US Federal Reserve meeting on October 27-28 will be important for global markets. Markets do not expect much change in interest rates for now, so the Fed's policy stance and its signals for the future will matter more.

He explained that if the US central bank keeps a tough stance on inflation, US bond yields and the dollar could strengthen. That could affect foreign investment flows into emerging markets. But if the Fed takes a balanced stance, global markets could get some temporary relief.

According to Radhakrishnan, India's industrial production data and companies' quarterly results will be key to deciding whether the country's strong economic growth prospects can withstand global pressure. Meanwhile, Jio Platforms shares are due to list on October 28. Investors will watch this closely, and it could affect primary market sentiment.

Ponmudi R, CEO of Enrich Money, said crude oil prices are a major concern for the market. Rising oil prices amid growing geopolitical tension in West Asia could raise India's energy import bill. This raises fears of greater inflationary pressure, strain on the rupee and an adverse impact on companies. With US bond yields rising on the back of the dollar, and given global investors' risk appetite, investors will look for signs of where interest rates are headed.

Last week, the domestic stock market had seen a sharp fall. The 30-share BSE Sensex dropped 1,605.44 points, or 2.15 per cent, while the NSE Nifty slid 546.15 points, or 2.36 per cent.