Markets guide for Monday: IPOs to watch and big earnings on deck. What investors should know

As markets reopen on Monday, investors should brace for a busy week filled with domestic and global triggers that could influence trading. The Nifty 50 ended last week with a 0.44% decline, dragged by auto, metal, and IT stocks. As of Friday, the index had managed a recovery, closing 0.42% higher at 24,854, while the S&P BSE Sensex gained 0.27% to 81,224.

Key factors to watch this week include foreign institutional investor (FII) flows, which have been in steady decline, offset by domestic institutional investors (DII) maintaining their buying momentum. FIIs sold over ₹77,701 crore in October alone, marking the largest outflow in Indian market history. Geojit Financial Services’ Chief Investment Strategist, V K Vijayakumar, noted, “This large-scale selling was absorbed by DIIs, and we expect this trend to continue in the near term.”

IPOs to track
Four mainboard IPOs are set to open this week, starting with Waaree Energies, which launches on October 21. The solar module manufacturer is looking to raise ₹4,321 crore, and its public issue closes on October 23. Deepak Builders & Engineers and Afcons Infrastructure will also open for subscriptions during the week, along with Godavari Biorefineries. Investors in the small and medium enterprise (SME) segment can look forward to five new issues, including Premium Plast and Danish Power.

In terms of listings, Hyundai Motor India will make its debut on the main exchange on October 22, while two SMEs, Lakshya Powertech and Freshara Agro Exports, will list during the week.

Q2 numbers in focus
Corporate earnings for the second quarter of FY25 will also be a key driver for market sentiment. Major players like HDFC Bank, Tech Mahindra, and Kotak Mahindra Bank have already released their results, and companies such as UltraTech Cement, Bajaj Finance, ITC, and ICICI Bank are slated to report their earnings this week.

Crude impact
Crude oil prices will be another important factor to watch. Last week, oil futures fell sharply, with Brent crude declining by 7% and U.S. WTI dropping by 8%. This marked the steepest weekly fall since early September, driven by reduced demand forecasts from OPEC and the International Energy Agency.

Technical outlook
Technically, Friday’s market performance suggests a potential short-term reversal. HDFC Securities’ Nagaraj Shetti pointed out, “The market’s recovery from its lows may boost bullish sentiment in the near term.” The Nifty faces immediate resistance at 24,900, while the key support level remains at 24,500.

Global markets
Globally, China’s stronger-than-expected economic data could have implications for India’s metals and commodities sectors. As China’s economy grew by 4.6% in the third quarter, better-than-expected industrial output and retail sales may stimulate demand for Indian exports like steel and iron ore.