Key Market Events to Watch: Inflation Data, U.S. Economic Policy, and Q2 Earnings Impact

Key Market Events for the Week Ahead (11-Nov-2024 to 16-Nov-2024)

1. Market Holiday: Markets will be closed on November 15, 2024, in observance of Shree Gurunanak Jayanti.

2. Inflation Data:

   • U.S.: Key inflation data will be released this week, which may impact global market sentiment.
   • India: India’s inflation data is also expected. This will be crucial for the upcoming RBI decisions.

3. RBI Interest Rate Outlook: Although the RBI Governor is not expected to make immediate changes to interest rates, the Monetary Policy Committee (MPC) will review the inflation data in its December meeting. A favorable inflation report could potentially lead to a rate cut next month.

4. China’s Economic Stimulus: China recently announced a stimulus package aimed at revitalizing its economy and promoting local growth. Markets are watching closely to see how India and China’s markets will respond.

5. U.S. Economic Policy Post-Election: Following the recent U.S. elections, any economic policy changes from former President Donald Trump will be of particular interest, especially if he addresses income tax reductions as hinted during his campaign. Such changes could impact global markets.

6. IPOs: Some IPOs are scheduled for next week, but weak market conditions may lead to delays or limited demand.

7. Q2 Earnings: Investors will closely monitor Q2 earnings reports to gauge the health of companies across sectors.

8. FII Activity: Foreign Institutional Investors (FIIs) continue to show a selling trend in the Indian market. Investors will watch closely to see if this sentiment shifts in the coming week.

9. INR/USD Exchange Rate: The Indian rupee has been weakening against the U.S. dollar. This trend will be monitored closely as it impacts import costs and foreign investor sentiment.

10. Commodities:

    • Crude Oil and Gold: Both remain within controlled price ranges. Investors are keeping an eye on any volatility in commodity markets.

11. Nifty Support Levels: The Nifty’s option chain suggests strong support at the 24,000 level. Investors will be watching to see if this support holds.

Given the uncertainty, investors may want to reserve funds for high-quality stocks.