Global trends, FPIs move, Q2 earnings to guide markets in holiday-shortened week: Analysts

Equity market investors would track global trends, foreign fund movement and quarterly earnings in a holiday-shortened week ahead, analysts said.

Stock exchanges BSE and NSE will conduct a special Muhurat trading session on Tuesday, October 21.

The symbolic trading session will be held between 1:45 pm and 2:45 pm. The market will remain closed for regular trading on Tuesday, but a special trading window will be open for one hour.

Equity markets would remain closed on Wednesday for Diwali Balipratipada.

“The truncated trading week will be event-heavy, with several key triggers lined up for investors. Market participants will first react to the quarterly earnings from heavyweights such as Reliance Industries, HDFC Bank, and ICICI Bank, which are likely to set the tone for the broader market,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

On October 21, the one-hour Diwali special Muhurat trading session, marking the beginning of Samvat 2082, will be closely watched for sentiment cues and festive cheer, Mishra said.

“The Q2 FY26 earnings season will continue in full swing, with major companies including Colgate, Hindustan Unilever, Dr Reddys Laboratories and SBI Life Insurance Company scheduled to report their results,” he noted.

Globally, developments around the proposed US tariffs on China, along with movements in crude oil prices and currency, will remain crucial in shaping global risk appetite and investor sentiment, Mishra added.

After withdrawing money on a net basis for the past three months, foreign portfolio investors (FPIs) have turned buyers with a Rs 6,480 crore investment in October so far, driven by strong macroeconomic factors.

“Upcoming results from Hindustan Unilever and Dr Reddys Laboratories are expected to further set the tone for the corporate earnings season. Any relief on US–China trade tensions could lift the market sentiments,” Pravesh Gour, Senior Technical Analyst, Swastika Investmart, said.

Last week, the BSE benchmark jumped 1,451.37 points or 1.75 per cent, and the Nifty surged 424.5 points or 1.67 per cent.

Ponmudi R, CEO – Enrich Money, an online trading and wealth tech firm, said, “The buoyant investor sentiment was evident across sectors in the week gone by, as Indian equities once again defied global headwinds to extend their rally to fresh 52-week highs.” Despite persistent volatility across global markets — driven by renewed trade tensions, banking stress in the US, and sharp commodity swings — domestic benchmarks remained resilient, supported by strong liquidity and unwavering investor confidence, he added.

Published on October 19, 2025