Indian Stock Markets Expected to Stay Range-Bound Following Week's Flat Performance
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Mumbai, Dec 28 (NationPress) The Indian benchmark indices concluded the week almost unchanged due to a lack of major catalysts. Strong performances in heavyweight sectors such as banking and pharma helped counterbalance declines in the IT sector.
Similarly, mid and small-cap stocks also finished the week on a flat note.
During Friday’s trading session, the share market registered gains, driven by buying activity in pharma, auto, IT, financial services, FMCG, media, and private banking sectors on Nifty.
The Sensex closed at 78,699.07, up by 226.59 points or 0.29 percent, while the Nifty settled at 23,813.40, up by 63.20 points or 0.27 percent.
The volatility index, India VIX, decreased by 5.68 percent to 13.24, indicating a reduction in market volatility.
Experts suggest that a stable move above this threshold could propel the index towards 24,000–24,100.
“On the downside, 23,500 is a critical support level. In the short term, Nifty is anticipated to consolidate between 23,500 and 23,900, with a breakout in either direction determining its next course of action,” stated Hrishikesh Yedve of Asit C Mehta Investment Intermediates Ltd.
Ongoing worries regarding FII outflows and a depreciating rupee, in addition to potential negative tariffs and lowered expectations for rate cuts in 2025, have contributed to the subdued market trend.
Experts also noted that uncertainty around Trump's economic policies and high valuations could influence the stock market in the short term, especially in emerging markets.
Looking ahead, significant attention is anticipated for the forthcoming Q3 results, which will play a pivotal role in shaping market direction.
“Investors are likely to adjust their portfolios based on pre-budget expectations. Furthermore, crucial data points such as PMI data for India, the US, and China, along with US jobless claims, will affect investor sentiment,” commented market analysts.
According to Siddhartha Khemka, Head-Research, Wealth Management, Motilal Oswal Financial Services Ltd, with no significant triggers anticipated in the near term, markets are expected to remain range-bound.
“Pre-quarterly business updates set to be released in the first week of January 2025 will offer insights into the upcoming earnings season and will be closely monitored by the markets,” he added.
