Key Market Movers This Week: US Elections, Fed Decision, and FII Trading - Read Now 

This is a critical week for the financial markets, with several key factors driving investor sentiment and trading strategies. The US presidential elections, scheduled for November 5, the Federal Reserve interest rate decision, and FIIs' trading activities will be the primary drivers this week for the equity markets.

Analysts further say that the US Presidential election will be a defining event that will draw upon the attention of global investors, while the FOMC meeting will be crucial too as it will decide the stand of the Fed on rates in the face of constant economic challenges. According to Santosh Meena, the Head of Research at Swastika Investmart Ltd, geopolitical tensions and alterations in oil prices will also continue to be important variables, which will influence market dynamics.

Domestic focus will be on Q2 quarterly earnings report culminations. Market will closely watch trading behavior of FIIs. Says Palka Arora Chopra, Director, Master Capital Services Ltd: "Key macro-indicators will continue to guide market trends. Important releases - HSBC India Manufacturing PMI, Services PMI, and the US S&P Global Composite PMI - will be instrumental in providing insight into economic momentum".

Indian stock exchanges BSE and NSE recently conducted a special 'Muhurat Trading' session on November 1 to mark Diwali as the new Samvat 2081 begins. The BSE benchmark increased a modest 321.83 points, or 0.40%, last week, but analysts say that relentless selling by FIIs last month has caused more than a 7% decline in benchmark indices from their all-time highs.

This week would see investor focus on the US markets more so due to elections and the Fed policy meeting, says Ajit Mishra, Senior VP of Research at Religare Broking Ltd. Critical this week would be earnings from the majors, such as Dr. Reddy's, Titan, Tata Steel, Mahindra & Mahindra, and Tata Motors that give a peep into the corporate performance amidst the economic uncertainty, he said.

Market responses to the US elections may create ripples in global markets for just a few days, however, US GDP growth rates, inflation trends, or possible interest rate cuts by the Fed will dictate further market movements. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services told CNBC-TV18, said that fundamentals will be predominant in the market's immediate outlook.

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