NEW DELHI: Investors will closely monitor the release of US non-farm payroll data, which could significantly influence the interest rate outlook. Additionally, attention will focus on quarterly results from the IT and banking sectors starting next week, says Vinod Nair, Head of Research at Geojit Financial Services.
The rising US bond yields and a stronger dollar index have deterred foreign investors, causing weakness in the market. Additionally, robust job data from the US this week has raised concerns about a potential rate hike by the Fed, with the surge in US bond yields indicating an impending increase in interest rates, he said.
The RBI's hawkish stance, particularly in its management of liquidity to counter inflationary risks, has further impacted the market, leading to an increase in India's 10-year bond yield, he added.
However, the market found some support from strong domestic PMI data and corrections in crude oil prices, which have helped it overcome the weak trend observed in the previous three weeks. The auto sector struggled this week due to mixed monthly data, he added.
Markets on Monday would react to crucial US Non-Farm payroll and unemployment data for the month of September as that could provide an outlook for future US Fed policy stance, says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Also focus will shift toward stock-specific action as Q2FY24 earnings begin next week with TCS announcing results on October 11, followed by Angelone, HCL Tech, and Infy. Thus, the IT sector will remain in the limelight, he said.