Stock Market Today: High impact of US developments

The polling for the US presidency is going to be held on the 5th of this month, and in the background of the meetings of the US Federal Reserve Committee to be held on the 6th and 7th, the investment trend of foreign investors is expected to have a high impact on the domestic stock markets this week. Domestically, the results of corporate companies will be key to investor sentiment. Analysts predict that the gains of the standard indices in the year 2081, which started on 1st of this month, may be moderate compared to last year. The background for this is the disappointing corporate results for the second quarter in a row. Fund managers and experts estimate that the net profits of Nifty-50 companies may increase by 5-7% in 2024-25. Some analysts say that the Nifty-50 index may touch below 24,000 points this week. Others say that the index, which has already suffered, may get some relief. It is said that even if there are gains, a strong resistance can be seen at 24,500. What do the analysts say about different sectors..

• IT shares may suffer ahead of US presidential election results. One of the brokerages says that a Trump presidency is positive for the market.
• Shares of telecom companies will follow the benchmark indices. Due to the tariff hike in late June, the company's revenue may increase for the next few quarters.
• Shares of oil companies may stagnate. Developments in West Asia and international oil price movements should be examined.
• Metal stocks are likely to outperform. The background is that some companies have registered strong results. The results of Tata Steel and Jindal Steel will be released this week itself.
• Pharmaceutical stocks may be volatile. This is due to weak sentiment in international markets. As the results of Dr. Reddy's (5th), MankindPharma (5th), Apollo Hospitals (6th), Lupine (7th) and Divi's (9th) are out this week, there may be movements in those shares.
• Analysts are positive on the outlook for machinery companies. However, due to high valuations and weak sentiment, the shares of this sector may be stagnant. A brokerage says that the BHEL share can be bought with a target of Rs.425.
• Shares of FMCG companies may suffer due to concerns about rural and urban demand. A brokerage cut the price target on Procter & Gamble Hygiene shares by 4% to Rs 17,800.
• A slowdown in earnings growth, weak demand and reduced pricing power could limit gains for cement stocks. There are expectations that the price situation will change from now to March and the infrastructure expenditure of the government will increase.
• Bank Nifty may move within a range with a positive trend. Short-term support at 51,000-51,150 level and resistance at 52,580 may be seen. SBI results to be released on Friday (8th) should be observed.
• Vehicle shares are likely to see a dip after the September quarter results as well as lukewarm October sales figures.

Board meetings today

Amararaja Energy and Mobility, Gland Pharma, Sai Silks Kalamandir, IRCTC, Andhra Paper, Raymond, IRFC, ABB India, Sundaram Finance, Exide Industries, KEC International, Hutson Agro Products, Bata India, Procter and Gamble Health, JK Paper