In the week beginning December 9, 2024 benchmark BSE index Sensex 30 gained 623.07 points (or 0.76%) and Nifty rose by 90.5 points (or 0.36%). How the markets perform this week will largely determined by factors that would take place abroad.
Experts are of the opinion that the US Fed could possibly decide on trimming the key interest rate in the world’s biggest economy, data on inflation and the decision of FIIs on whether to pick up or sell Indian stocks. Indian investors will be trawling other global cues before taking Buy or Sell calls on their positions.
Blend of foreign and domestic factors
Pravesh Gour, senior technical analyst of Swastika Investmart told the media, “The Indian stock market’s future trajectory will be influenced by a blend of global and domestic factors. Global trends, particularly the performance of US markets and the Fed’s monetary policy decision, will play a significant role. Additionally, domestic economic indicators like inflation, will shape the market sentiment.”
On Monday, December 16, 2024, the Centre will release WPI inflation data. This will be another set of economic indicator that will be keenly watched.
Markets expect a 25 basis point cut by US Fed
“The key focus will be on the US Federal Reserve meeting, where a 25 basis point rate cut is already factored in. The Fed’s commentary on future rate policy will hold significant importance,” Ajit Mishra, senior vice-president, research of Religare Broking told the media.
In the third week of November it was reported that the correction in the Indian markets was largely due to the flow out of FII funds. It happened mainly due to an abnormal rise in Indian valuations and anticipated revival of the Chinese markets. Weak Q2 earnings in Indian markets added to the FII sale. Whether the FIIs buy or well this week would also decide the movement of the markets this week.
Major gainers, losers last week (beginning December 9)
Some of the top stocks that were among the gainers were Bharti Airtel, Tata Consultancy Services (TCS), HDFC Bank, ICICI Bank and Infosys. Among the losers featured State Bank, Reliance Industries, Life Insurance Corporation, ITC and Hindustan Unilever.
As the markets roll into the third week of the last month of 2024, decisions taken abroad could impact the Indian stock exchanges. The factors are the upcoming decision of the US Fed on key interest rates. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
