Will IIP data, Fed minutes, and FII movements steer the Indian stock market this week?
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Synopsis
As the Indian stock market closes the week on a downturn, investors are keenly awaiting vital domestic and international cues, including IIP data and Fed minutes, that could steer market directions. What impacts will these factors have on your investments?
Key Takeaways
- Indian stock market ended the week negatively.
- Investors await key IIP data release.
- Focus on Fed minutes for future interest rates.
- Market expected to remain cautious amid tight liquidity.
- Short-term support at 26,000 and resistance at 26,200.
Mumbai, Dec 28 (NationPress) The Indian stock market concluded the week on a negative note, prompting investors to seek out significant domestic and global indicators that could influence market trends in the upcoming days.
Industrial output data, minutes from the US Federal Reserve meeting, currency fluctuations, and activities of foreign investors are set to be the focal points this week.
On Friday, Indian equities ended lower as investors opted to secure profits amid a lack of fresh catalysts.
Cautious sentiment and mixed signals from global markets also put pressure on the indices. The Sensex fell by 367 points, or 0.43%, finishing at 85,041.45, while the Nifty decreased by 100 points, or 0.38%, closing at 26,042.30.
The broader market indices faced similar declines, with the BSE Midcap index dipping by 0.18% and the Smallcap index retreating by 0.34%.
Market analysts suggest that the short-term outlook remains subdued. They anticipate that the market will likely remain range-bound in the coming week as liquidity conditions tighten and investors await crucial macroeconomic signals before making new investments.
“As long as the Nifty remains above the 26,000–25,800 immediate support zone, market sentiment is expected to retain a positive bias,” experts commented.
“Immediate resistance is seen near 26,200, followed by 26,500, while support levels are observed at 26,000 and 25,800. A decisive breach below 25,800 could trigger short-term selling pressure,” they added.
A key driver for the upcoming week will be the industrial production data from India. Investors will closely monitor the Index of Industrial Production for November 2025, which is set to be published on December 29.
Another critical global indicator will be released from the United States, where the Federal Reserve is scheduled to disclose the minutes from its Federal Open Market Committee meeting on December 31.
During its December policy meeting, the Fed reduced interest rates by 25 basis points to 3.75%, maintaining its easing approach.
Investors are expected to seek insights regarding the future trajectory of interest rates and the Fed's stance on inflation and economic growth.
Additionally, the movement of the Indian rupee will be under scrutiny. On Friday, the rupee depreciated by 19 paise, closing at 89.90 against the US dollar.
With no significant domestic policy announcements anticipated, market watchers have indicated that participants are likely to proceed with caution.
Experts predict that stock-specific activity may persist, while broader indices could trade within a narrow range as investors evaluate economic data, international cues, and foreign fund inflows in the week ahead.
Point of View
It's essential to understand that while the Indian stock market shows signs of volatility, the focus on key economic indicators like IIP data and global cues from the Fed is crucial. Investors should remain cautious yet optimistic, as these elements can provide valuable insights into market trends.
NationPress
07/01/2026
Frequently Asked Questions
What is the current status of the Indian stock market?
The Indian stock market has recently closed on a negative note, with both Sensex and Nifty witnessing declines.
What key indicators should investors watch this week?
Investors should focus on the upcoming industrial production data and the minutes from the US Federal Reserve meeting.
How did the Sensex and Nifty perform recently?
The Sensex fell by 367 points, or 0.43%, while the Nifty decreased by 100 points, or 0.38%.
What levels should investors watch for Nifty?
Investors should monitor the immediate support zone around 26,000–25,800 and resistance levels near 26,200.
What is the expected trend for the market?
Market analysts predict a range-bound trend with stock-specific actions due to cautious investor sentiment.
