Speculation eases as 5 States heading for Assembly polls

Buoyed by the Dovish stand taken by the US Federal Reserve in keeping the policy rates unchanged, strong GST collections, no negative results surprises and stable macroeconomic data; the domestic stock market wriggled out of a two-week slump and closedhigher during the week ended. BSE Sensex rose 0.91 percent to close at 64,363.78, while NSE Nifty added 0.96 percent to end at 19,230.60. Broader market outperformed the benchmarks.

The BSE Mid-cap and Small-cap indices added two per cent. While there are still many ifs and buts, the statement of US Fed reassured the market that the probability of any sharp increase in interest rate in the US has come down. This will have impact on many things globally, the flow of capital from emerging markets to back to US is unlikely to see sharp increase from hereon. The market is interpreting this latest statement of US Fed as the end of the rate hiking cycle.

Elections in five states namely Mizoram, Chhattisgarh, Madhya Pradesh, Rajasthan and Telangana, which account for 15 per cent of the total Lok Sabha and Rajya Sabha seats, would kick off next week on Tuesday (November 7).

These elections are seen as the semi-finals to the upcoming Lok Sabha elections, which are likely to be held in April or May next year.

Stock investors would keenly be following the election outcomes in these states, as they will provide a glimpse into how the Hindi-speaking heartland of India, which is a stronghold of the BJP party perceives the BJP and its policies. Prominent companies to announce their earnings in coming week include Divi Labs, Power Grid Corporation, Adani Ports, Coal India, Eicher Motors, Hindalco Industries, Mahindra & Mahindra, ONGC, Tata Power, LIC, Lupin, Aurobindo Pharma, Bosch, Shree Cement, Zee Entertainment Enterprises, Biocon, Bharat Forge, Apollo Tyres, IRCTC, Zydus Lifesciences, Bata India, Power Finance Corporation, United Spirits, Ashok Leyland, Glenmark Pharma, and Hindustan Aeronautics.

IPO market continued to remain buoyant. The listing of Cello World is keenly awaited with the shares trading in grey market at premium of 22-25 per cent. Honasa Consumer also may list on bourses in coming week.

(The author is a

senior maket analyst and former vice- chairman, Andhra Pradesh State Planning Board)