Q2 earnings, US Fed Interest Rate Decision Key Drivers for Stock Markets this Week: Analysts

In an event-heavy week, stock investors will track ongoing quarterly earnings, the US Federal Reserve's interest rate decision, and macroeconomic data for market direction, analysts said.

Moreover, progress in India-US trade negotiations will remain a key focus for investors, an expert said.

"The ongoing Q2FY26 results season will continue to shape market direction, with several major companies scheduled to release their financials. Investors will first react to Kotak Mahindra Bank’s results, followed by updates from IOC, TVS Motor Company, Larsen & Toubro, Hindustan Petroleum, ITC, Cipla, Dabur, Maruti and ACC.

"On the macroeconomic front, India’s Industrial Production data for September, due on October 28, will be closely tracked for signs of industrial recovery. Globally, the focus will shift to the US Federal Reserve’s policy decision on October 29, which could influence global liquidity trends and risk sentiment," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

Additionally, market participants will monitor developments surrounding the scheduled US–China presidential meeting, which could further ease trade tensions and impact global markets, Mishra added.

Trading activity of foreign investors and movement of Brent crude oil would also be tracked by investors, analysts said.

"On the domestic front, progress in India–US trade negotiations will remain a key focus for investors in the coming week," Ponmudi R, CEO - Enrich Money, an online trading and wealth tech firm, said.

India and the US are "very near" to finalising a bilateral trade deal, an official said on Friday, even as Commerce and Industry Minister Piyush Goyal insisted that New Delhi will not do any deal in a hurry or with a "gun to our head".

Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said, "This will be a macro-heavy week, with investors closely tracking key data, including US GDP, interest rate decisions from the US Federal Reserve, European Central Bank (ECB), and Bank of Japan, along with China’s manufacturing PMI and India’s Industrial Production data." In a holiday-shortened last week, the BSE benchmark climbed 259.69 points or 0.30 per cent, and the Nifty went up by 85.3 points or 0.33 per cent.