Mumbai28 minutes ago
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The stock market is expected to rise this week. From wholesale inflation data to the Federal Reserve’s decision on interest rates, monetary policy meetings at the Bank of England and Bank of Japan, America’s GDP figures and the IPO opening this week will decide the course of the market.
On Friday (December 13), the last trading day of last week, the market remained in a bullish trend for the fourth consecutive week due to the sharp recovery from the day’s low. This is a signal to continue the strategy of buying on dips. Positive sentiment may arise due to expectation of consolidation in the market.
According to Siddharth Khemka, Research Head, Wealth Management, Motilal Oswal Financial Services, the market will consolidate at the broader range and due to sector rotation and stock action, the market will gradually move forward.
5 factors which will decide the market movement this week…
1. Domestic Economic Data: Wholesale inflation expected to reach 2.2% in November
Wholesale inflation (WPI) data will come for November. A month ago i.e. in October 2024, it was at 2.36%, but it is expected to come down to 2.2% in November. Wholesale inflation increased to 2.36% in the month of October. Earlier in the month of September, wholesale inflation was at 1.84%. In August it came down to 1.31%. Inflation has increased due to increase in prices of vegetables and food items.
Apart from this, the upcoming decisions of the December manufacturing and services PMI flash data monetary policy meeting this week and foreign exchange reserves (Forex) will also become factors for the market movement. India’s foreign exchange reserves continued to decline for the ninth consecutive week. In the first week of December it was at $655 billion.
2. FOMC meet and US GDP data
Investors’ focus will be on the Fed meeting to be held on December 19. Experts expect that the Central Bank may cut the interest rate by 25 basis points next week. Apart from this, the incoming Trump government’s development, comment on inflation and indication of rate cut in the next year i.e. 2025 will be monitored.
The focus will also be on America’s GDP figures coming on the same day (December 19). As per the last two estimates, the US economy grew 2.8% in the September quarter compared to 3% in the June quarter.
3. Global Economic Data- Inflation of Europe, UK and Japan
Apart from the policy meeting, this week is also expected to be data based as during this period, manufacturing and service PMI data from many countries including America, Europe and Japan will be monitored for December. Apart from this, November inflation figures will come from Europe, UK and Japan.
4. IPO and Listing: 6 IPOs of mainboard, 3 in SME
Only a total of 9 IPOs are coming this week, out of which 6 are mainboard and three are SME. In this, the public issue of DAM Capital Advisors, Transrail Lighting, Mamta Machinery, Concord Enviro Systems and Sanathan Textiles will open for subscription on December 19, while the IPO of Vantiv Hospitality will be launched on December 20.
The IPO of Inventurus Knowledge Solutions will close on December 16. Apart from this, the IPO of International Gemological Institute will be listed on December 17, Vishal Mega Mart, Sai Life Sciences and One MobiKwik Systems will be listed in the stock market from December 18. After this, Inventurus Knowledge Solutions will be listed in the stock market on 19th December and International Gemological Institute (India) on 20th December.
Meanwhile, from the SME segment, the IPO of NACDAC Infrastructure will open for subscription on December 17. Apart from this, IPO of Identical Brains Studios will open on 18 December and Numalayam Steel’s IPO will open on 19 December. Whereas the offers of Yash High Voltage and Hemps Bio will close on 16th December and 17th December.
5. FII’s and DII’s: Foreign investors bought shares worth ₹11,934 crore
During this period, selling and buying of FII and DII will also be monitored in the market. There has been a decline in FII withdrawals in the last two weeks. So far in December, FIIs have invested Rs 11,706.89 and domestic investors have invested Rs 4,672.49.
On the last day of the week, domestic investors sold Rs 732.20 crore. But, they remain buyers on monthly basis from August 2023. DIIs bought shares worth Rs 2,880 crore last week and Rs 4,672 crore in December.
Sensex rose 623 points last week
On the last trading day of last week i.e. December 13, the market closed at the level of 82,133 after a rise of 843 points (1.04%). During trading, the Sensex had recovered 2,131 points from the day’s low of 80,082 and reached the day’s high of 82,213.
Nifty also closed at the level of 24,768 with a rise of 219 points (0.89%). During trading, Nifty recovered 612 points from the day’s low of 24,180 and reached the day’s high of 24,792.
Out of 30 Sensex stocks, 26 rose and 4 fell. Whereas out of 50 stocks of Nifty, 41 had a rise and 9 had a fall. The FMCG sector rose the most in the NSE sectoral index by 1.29%. Sensex rose 623 points in week’s trading.
