Q2 results FY26 to inflation data: Top five triggers for Indian stock market this week

Stock market next week: The Indian stock market benchmarks, Sensex and Nifty 50, finished lower on Friday, November 7, marking their third straight session of declines amid weak global cues.

During the session, both indices fell nearly 1% but recovered much of the losses to close marginally down.

The Sensex slipped 95 points, or 0.11%, to 83,216.28, while the Nifty 50 ended at 25,492.30, down 17 points, or 0.07%. Meanwhile, the BSE Midcap index gained 0.25%, and the Smallcap index closed almost unchanged.

“Markets ended lower for the second consecutive week, weighed down by persistent foreign fund outflows, mixed corporate earnings, and cautious global cues. Despite optimism surrounding progress in India–US trade talks, sentiment remained subdued through the holiday-shortened week. Both benchmark indices declined by over 0.80%, with the Sensex closing at 83,216.28 and the Nifty settling at 25,492.30,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

According to Mishra, markets are likely to remain volatile in the near term amid global uncertainties and a heavy flow of economic and earnings data.

“While short-term sentiment could stay cautious due to persistent FII outflows and uneven earnings, improving domestic macro indicators and steady corporate performance may provide underlying support. Traders should maintain a stock-specific approach, focusing on sectors such as banking (especially PSU banks), auto, and select metal counters, which continue to show relative strength. Maintaining a few hedged short positions against long trades may also be prudent, considering recent weakness in select stocks post-earnings. Investors, on the other hand, should continue to focus on earnings quality and realign their portfolios based on company fundamentals and long-term growth prospects,” he added.

Top five triggers for the Indian stock market

Q2 results FY26

On the earnings front, quarterly results from prominent companies such as Bajaj Finance, ONGC, Bajaj Finserv, Biocon, Ashok Leyland, Asian Paints, Tata Steel, BPCL, Marico, and Oil India will be closely tracked for sectoral cues.

Inflation data

The coming week will be significant, with multiple important macroeconomic data releases lined up. On the domestic front, the focus will be on India’s CPI and WPI inflation figures, which are expected to shed light on the inflation trend and future policy direction.

AI-related stocks

According to Mishra, traders will also monitor the performance of AI-related stocks and developments around global trade deals, both of which are expected to influence market sentiment.

This week, AI stocks saw a downturn on Wall Street, erasing $1.2 trillion worth of stock valuation since last Friday. Shares of leading AI firms, including Nvidia, Microsoft, Palantir Technologies, Broadcom, and Advanced Micro Devices, dragged down the broader markets as they recorded sharp declines.

A report by Kotak Institutional Equities titled “AI: Bubble, trouble?” suggests that the recent market correction stems from concerns that valuations have outpaced underlying fundamentals.

The brokerage highlights that the sharp rise in AI-related market capitalisations worldwide — spanning chipmakers to software companies — reflects “extraordinary” revenue and profit expectations that may be challenging to sustain.

IPO Activity

The buzz in the primary market will remain intact as six new IPOs, four in mainboard and two in SME segment, are scheduled to open for subscription next week.

Apart from new IPOs, the market will also witness listing of Groww IPO, Lenskart IPO, Pine Labs IPO and four other IPOs in the upcoming week.

Gold prices

Gold prices fell for the third straight week, pressured by a stronger US dollar and cautious comments from Federal Reserve officials, which dampened investor sentiment.

According to market experts, dollar’s continued strength and the Fed’s wait-and-watch stance have curbed demand for the safe-haven metal, keeping bullion prices confined to a narrow range during the holiday-shortened week.

On the Multi Commodity Exchange (MCX), December gold futures declined by ₹165, or 0.14%, over the past week to close at ₹1,21,067 per 10 grams on Friday.

Globally, Comex gold futures for December delivery gained $13.3, or 0.33%, during the week, ending at $4,009.8 per ounce on Friday.

“Gold prices traded in a flat range this week near ₹1,21,000 per 10 grams as the US dollar remained weak around the 100 mark, while Comex gold held firm above $4,000, keeping MCX prices supported at ₹1,21,111. A weak rupee also contributed to the positive tone in domestic prices. In the coming week, market participants will closely track speeches from Federal Reserve members and CPI data from both the US and India. Gold is expected to remain range-bound and volatile between ₹1,18,500 and ₹1,24,000,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Technical levels

According to Mishra, market breadth improved, with more stocks participating in the up-move. While the broader indices maintained a constructive tone, smallcaps showed signs of fatigue, suggesting a more selective market environment ahead.

Commenting on the Nifty outlook, he said, “The Nifty extended its decline for the second week, slipping below the crucial short-term moving average (20-DEMA) and finding interim support near 25,300. Resistance is now seen around the 25,800–26,100 zone, with a potential retest of record highs if momentum improves. A sustained move below 25,300 could, however, trigger further downside toward 24,900–25,050.”

Meanwhile, on Bank Nifty outlook, Mishra said, “ The index outperformed the benchmark, holding firm above its short-term moving average support near 57,400. Its performance will be key to the broader market trend, with a decisive breakout above 58,500 likely to fuel a fresh rally towards 60,000 levels.”

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.