US tariffs, trade deal talks, Q2 results likely to drive market sentiment next week

Mumbai, Oct 19 (IANS) The coming week is expected to be crucial for Indian stock markets as quarterly earnings, US tariffs, trade deal developments, and FPI activity are likely to shape market sentiment.

Any updates from the United States on tariffs against China or progress on the India-US trade deal will likely influence market trends.

Union Commerce Minister Piyush Goyal recently said that discussions on the proposed India-US bilateral trade agreement are progressing rapidly and in a positive atmosphere.

At present, Indian equity indices are trading at all-time highs. If both countries announce a bilateral trade agreement, the market could witness a fresh rally.

Several major companies including HUL, SBI Life, Dr. Reddy’s, and SBI Card have already announced their July–September quarter results. So far, Q2 earnings have largely met market expectations.

Foreign Portfolio Investors (FPIs) have turned net buyers this month, investing Rs 6,480 crore in equities so far in October. This comes after three consecutive months of net selling by FPIs.

The past week was strong for Indian markets. The Nifty rose 424 points or 1.68 per cent to close at 25,709.85, while the Sensex jumped 1,451.37 points or 1.76 per cent to settle at 83,952.19.

Among sectoral indices, Nifty Realty was the top gainer, rising 4.14 per cent. Nifty Auto gained 1.90 per cent, Nifty Financial Services 2.59 per cent, Nifty FMCG 3.00 per cent, Nifty Infrastructure 1.70 per cent, and Nifty Consumption 2.73 per cent.

Performance across midcap and smallcap segments was mixed during the trading week of October 13–17.

The Nifty Midcap 100 Index gained 204.85 points or 0.35 per cent to close at 58,902.25, while the Nifty Smallcap 100 Index slipped 10.95 points to 18,122.40.

Analysts said that the rally was underpinned by strength in consumption-driven sectors and a broad-based recovery across realty, healthcare, and banking.

“Investor confidence was further buoyed by easing concerns around asset quality in the financial sector and expectations of improved volume growth in the festive quarter," market experts said.

--IANS

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