Indian Stock Market Faces Continued Pressure from FIIs and Earnings Woes

The Indian stock market struggles persist with over 2.5% dip for the fourth consecutive week. Major concerns include FIIs selling and weak earnings forecasts. Market volatility is expected with upcoming October derivatives expiry and auto sales data. Analysts predict possible tactical rebound amidst global economic uncertainties.

After enduring a decline of over 2.5% for four consecutive weeks, the Indian stock market faces ongoing challenges primarily fuelled by foreign institutional investor (FII) sell-offs and subpar earnings performances. Market experts caution that these factors are likely to continue influencing market sentiment in the upcoming week.

Crucial earnings announcements from major players such as Bharti Airtel, Cipla, Dabur, and L&T are on the horizon, intensifying investor scrutiny. The expiration of October derivatives contracts is anticipated to heighten market volatility, with forthcoming auto sales data also offering important indicators.

While U.S. markets present a mixed picture, with the Dow Jones falling over 2.5% and the S&P 500 and Nasdaq registering varied trends, their performance remains significant amid global economic discourse. Amidst ongoing speculations surrounding U.S. rate cuts and the presidential election, experts suggest potential tactical market rebounds, bolstered by resilient manufacturing data indicating an economic upturn in H2FY25. Vinod Nair from Geojit Financial Services notes prospects for oversold conditions in the domestic market.

(With inputs from agencies.)