• Domestic stock markets are expected to focus on Foreign Institutional Investment selling, global cues, and domestic developments.
• The banking and IT sectors will play a crucial role in determining the market's next move.
• The Indian stock market will witness significant activity with the listing of several companies and the opening of IPOs.
• Market trends indicate cautious optimism, with key sectors, global cues, and the political scenario shaping the market's trajectory.

In the upcoming week, domestic stock markets are expected to shift their focus back to Foreign Institutional Investment (FII) selling, global cues, and domestic developments such as company earnings and the winter session of Parliament, according to market analysts.

The performance of the banking and IT sectors will play a crucial role in determining the market's next move. Ajit Mishra, SVP of Research at Religare Broking Ltd, stated that traders would closely monitor global market trends, with the banking and IT sectors being pivotal in shaping the market's future direction.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, opined that Trump's victory has had a significant impact on both the equity and bond markets in the US. Equities have boomed due to expectations of the positive impact of Trump's promised corporate tax cut and his pro-business policies.

Manish Goel, Founder and MD of Equentis, noted that investors are closely monitoring the situation in Maharashtra amid the elections for signs of political stability and potential policy changes.

He added that immediate market reactions are expected based on the outcome and perceived stability of the new government. The election result will influence both state governance and broader Indian market sentiment. The markets resumed their corrective trend after a brief period of consolidation, shedding over two and a half percent for the week. Despite a flat opening, pressure from heavyweight stocks pushed the benchmarks lower, resulting in a muted session to close out the week.

Market Performance and Future Predictions

Mounting concerns over rising CPI inflation and persistent disappointments in corporate earnings weighed heavily on sentiment. As a result, the Nifty and Sensex settled near the week's lows at 23,532.70 and 77,580.30, respectively. Most sectors mirrored the benchmarks' downward trajectory, with metals, FMCG, and auto stocks among the hardest hit.

However, the IT sector showed resilience, managing to gain nearly a percent amid the widespread selling. Broader indices, including midcap and smallcap stocks, were hammered, losing over 4 per cent each.

Global Market Trends and Their Impact

The Indian stock market is set to witness significant market activity this week with the listing of Zinka Logistics Solutions, Neelam Linen and Garments, Mangal Compusolution, and Onyx Biotech. Starting Tuesday, November 19, the market will also see the opening of one mainboard IPO and two small and medium enterprise (SME) IPOs for public subscription.

IPO activity in the country hit an all-time high in the calendar year 2024, with the total issue size amounting to ₹1.38 trillion, the highest in ten years. The previous peak was ₹1.31 trillion in 2021.

Markets will remain closed on November 20 for the election. Results for the Maharashtra and Jharkhand Assembly polls are expected on Saturday, November 23. The rise in US Treasury yields continues to exert pressure on emerging markets like India. The 10-year US bond yield currently stands at 4.44 per cent, while the 2-year yield is at 4.3 per cent. A stronger dollar index, now at 106.68, further challenges foreign inflows into India.

Higher US bond yields attract capital to US assets, often leading to outflows from emerging markets. Additionally, a stronger dollar increases the cost of foreign investments, further dampening market sentiment.