Key Factors To Watch For Indian Stock Market Next Week: Fed Meet, Q2 Earnings & Trade Talks To Steer BSE Sensex, Nifty50

After a strong six-day rally, the Indian benchmark indices snapped their winning streak on Friday, weighed down by profit booking at higher levels, concerns over trade negotiations, and firm crude oil prices. The BSE Sensex dropped 344.52 points, or 0.41%, to close at 84,211.88, while the Nifty 50 slipped 96 points, or 0.37%, to settle at 25,795.15.

 Mr. Puneet Singhania, Director of Master Trust Group said, “The key benchmark indices, Nifty 50 and BSE Sensex, notched their fourth straight week of gains, each advancing 0.3% for the week ending October 24, fueled by steady corporate earnings and vibrant festive season demand. Nifty prices initially climbed to 26104.20, the level not seen since October 2024, but failed to hold onto gain and settled the week at 25795.15. Bank nifty prices continued to hit record high before settling the week on flattish note.”


Key triggers to watch in stock market next week

US Fed Policy Meet on October 28–29
The biggest global trigger next week will be the US Federal Reserve’s policy meeting, scheduled for October 28 and 29. Market experts widely expect the central bank to cut interest rates to ease borrowing costs and support economic momentum.

Q2FY26 Earnings to Guide Market Direction
The ongoing second-quarter earnings season (Q2FY26) remains a key domestic driver. Several heavyweights are set to declare their results this week, which will provide insights into sectoral trends and corporate profitability.

US-China Trade Developments Under the Lens
Markets will also track the upcoming US–China presidential meeting, which could influence global risk sentiment. 

India–US Trade Deal Nears Final Stage
Back home, trade relations between India and the United States are also in focus. Reports suggest that the two nations are close to finalising a trade agreement, with consensus reached on most major issues.

Singhania added, “Strong Diwali sales uplifted consumer and retail sectors, while easing U.S.-China trade tensions, with a confirmed leaders’ meeting next week, bolstered export-driven sectors like IT and base metals. PSU banks also rallied 2.3%, supported by robust quarterly results. The Indian rupee’s second consecutive week of gains against the dollar, appreciating by 0.2%, further enhanced investor confidence by easing import cost pressures. However, rising global crude oil prices, with Brent crude climbing nearly 8% weekly due to geopolitical tensions, sparked concerns over inflation and input costs, particularly for oil-dependent sectors. Profit booking intensified on Friday as investors locked in gains amid cautious India-U.S. trade talks, with India prioritizing flexible terms. Despite the late dip, small- and mid-cap indices rose 0.7% and 0.6%, reflecting market resilience. On the institutional front, FIIs turned net buyers, infusing ₹342.74 crore in equities, while robust DII inflows of ₹5,945 crore offered strong support, reinforcing the market’s overall bullish undertone.”

Gold and Silver Lose Shine After Record Rally
After nine weeks of consistent gains, gold and silver prices finally saw profit-taking this week. On the Multi Commodity Exchange (MCX), December gold futures dropped ₹3,557, or 2.80%, to close at ₹1,23,451 per 10 grams, while silver futures for December fell ₹9,134, or 5.83%, to ₹1,47,470 per kg.
The correction came amid a stronger US dollar, easing geopolitical tensions, and softening global bullion prices. Both metals had been on an upward trajectory since early August.

Outlook
With global central bank cues, earnings momentum, and trade negotiations all converging, volatility may stay elevated in the coming week. Market participants are likely to adopt a “wait-and-watch” approach until clarity emerges on interest rate trends and trade outcomes.

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