Stock markets likely to stay struggling thanks to US elections, COVID-19 scare

Stock markets are expected to stay struggling in the week thanks to the overhang folks presidential polls and uncertainty over global growth thanks to resurging cases of coronavirus, consistent with analysts.

Uncertainty over the worldwide growth after recent spike in coronavirus cases within the US and Europe and resultant lockdowns in few European countries have weighed on investor sentiment.

Analysts, however, expect that better-than-expected financial results thus far and improved high-frequency economic data are expected to support the market. Quarterly earnings from companies like HDFC and Punjab commercial bank and auto sales numbers in the week would also steer the market, said analysts.

Echoing the view, Vinod Nair, Head of Research at Geojit Financial Services said that markets will remain struggling going forward as political developments associated with the US election will act as an overhang amidst higher volatility.

HDFC, Punjab commercial bank , Adani Ports, Sun Pharmaceutical, Lupin, BHEL, Cipla and Union Bank of India are scheduled to release their quarterly earnings in the week .

Auto companies also will be focused in the week with sales data announcement. Fed rate of interest decision also will be tracked by investors.

Concerns over prospects of worldwide economic recovery thanks to the resurgence of COVID-19 in various nations still weigh down investors’ sentiments and stock markets are likely to witness volatility in the week , analysts said.

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