Stock Market Outlook: The direction of the local stock markets will be decided by the activities of foreign investors, global trends,, and quarterly results of companies next week. Analysts have expressed this opinion and said that due to the settlement of monthly derivatives contracts, the market may see some more decline. The market had fallen sharply last week due to heavy withdrawal of foreign funds and poor second-quarter results of companies. An expert said that the market may remain weak in the near term as investors remain cautious ahead of the US presidential election early next month.

The downtrend will continue in the short term.

Stock markets will remain closed on Friday on the occasion of Diwali, but there will be a special Muhurat trading for one hour in the evening. Leading stock exchanges BSE and NSE will hold a special one-hour 'Muhurat trading' on the occasion of Diwali on November 1, which marks the beginning of the new Samvat 2081.

Vinod Nair, Head of Research, at Geojit Financial Services, said, "We expect the market to continue to decline in the short term. The change in this trend will depend on the slowdown in FII selling and the results of the US presidential elections."

Iran-Israel conflict and crude oil prices will remain important

Santosh Meena, Head of Research, at Swastika Investmart Ltd, said, "Going forward, FII flows will play a key role in determining the market direction, while October futures and options settlement is expected to keep the market volatile."

The second quarter results session is currently underway. In such a situation, the upcoming quarterly results will play an important role in giving direction to the market. He said that geopolitical developments on the global front, especially the Iran-Israel conflict and its impact on crude oil prices will be important for the direction of the market.

Wait and watch the situation

Meena said, "Markets across the world may adopt a cautious and wait-and-watch approach ahead of the US presidential election. Important data such as US employment data, GDP data, and China's PMI manufacturing data will be important indicators for the market."

America's main PCE price index will be released on October 31, on the basis of which the US central bank assesses inflation. Apart from this, the Bank of Japan is also going to announce its interest rate decision on October 31.

The quarterly results of these big companies will come

This week, Adani Power, BHEL, Adani Enterprises, Adani Ports, and Dabur India will announce their quarterly results.

V K Vijayakumar, Chief Investment Strategy, Geojit Financial Services, said, “The FPI selling spree that began in early October is continuing and there are no signs of a reversal in this trend yet.

FPIs have started selling after China announced stimulus measures. Apart from this, the valuation of Chinese stocks is also low. FPIs remain sellers due to the high valuation of stocks in India.

The US presidential election will be held on November 5

Vijaykumar said that FPI selling has affected the market sentiment and Nifty has come down by 8 percent from its peak level. Siddharth Khemka, Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, "Overall, Nifty has come down by 8 percent from its all-time high of 26,277 points due to weak global cues, weaker than expected second-quarter results.

This trend of weakness in the market will continue due to the US presidential elections on November 5. Last week, the BSE Sensex comprising 30 shares fell by 1,822.46 points or 2.24 percent, while the Nifty lost 673.25 points or 2.70 percent.