Domestic markets are expected to open cautiously on Monday amid the festival mood. With the global market remaining under pressure due to geopolitical tension besides economic slowdown worries, The market’s initial reaction on the new week will be influenced by the sharp surge in crude oil prices over the weekend.

Furthermore, a slew of earnings reports from heavyweights expected this week will significantly impact market direction. The domestic market will remain in a narrow range, said analysts. The unabated selling by foreign portfolio investors will continue, they added.

Results of major companies

Some of the prominent companies that will declare their quarterly results include HDFC Bank, Federal Bank, Ceat, ICICI Securities, Bajaj Finance, Can Fin Homes, ICICI Prudential Life Ins Co Ltd. L&T Technology Services, Syngene International, CIE Automotive India, Happiest Minds Tech, Tata Elxsi, Bajaj Auto Ltd., Bandhan Bank Limited, ICICI Lombard Gen Ins Co Ltd., Indusind Bank Limited and LTIMindtree Ltd.

FPI Selling

The FPI selling, which began in September, continues in October. As per NSDL data FPIs sold equity for Rs 13,652 crores through the stock exchanges through 13th October. But they invested Rs 3868 crores through the primary market and others during the same period, taking the net sell figure to Rs 9,784 crores.

The sustained rise in the US bond yields was the principal factor driving the FPI selling.

“FPIs continued to sell in financials, power and IT and buy capital goods and automobiles. The Indian market continues to exhibit resilience even amid many challenges, and, therefore, there is a growing concern among FPIs that if they continue to sell, they will miss out on the potential rally in the Indian market. This might restrain the FPIs from selling heavily in the coming days, said: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Gift Nifty at 19,722 indicates a flat-to-downward opening for Nifty, as Nifty futures on Friday closed at 19,742.

Global and domestic macroeconomic data, ongoing Q2 earning seasons, crude oil inventories, and FII/DII trading activities will be in focus, said Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd.

“We expect markets to remain range-bound for next week, as they will take further cues from a surge in crude oil prices, the Israel conflict, banks’ quarterly results , as banks NIM % will remain in focus,” it added.

According to Santosh Meena, Head of Research, Swastika Investment Ltd, The activities of Foreign Institutional Investors (FIIs) will be important, given their recent consistent selling streak. The trajectory of the US market, particularly Nasdaq’s pattern of lower highs and lower lows, will play a pivotal role in market sentiment.