Market Forecast: Key Factors Influencing Inflation, IIP, and Global Economic Data Next Week
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New Delhi, Dec 8 (NationPress) The market forecast for the upcoming week is anticipated to be influenced by a combination of global signals, local economic indicators, and the dynamics of investment flows from both foreign and domestic institutional investors, as per experts on Sunday.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart mentioned, "Major macroeconomic data releases—including retail inflation and industrial production figures from India, alongside US Core CPI and unemployment statistics—are predicted to impact overall market sentiment."
Last week, the Indian stock market concluded with positive results. This marks the third consecutive week of gains in the stock market. The Nifty index finished at 24,677, gaining 2.27 percent or 546 points, while the Sensex closed at 81,709 with a gain of 2.39 percent or 1,906 points.
The favorable remarks from the Reserve Bank of India (RBI) are being attributed as a catalyst for the stock market's rise. The central bank announced a 0.50 percent reduction in the cash reserve ratio (CRR) during the December monetary policy, which is expected to enhance liquidity within the banking system. The RBI also conveyed optimism regarding robust demand and industrial expansion.
Additionally, the influx of investments from foreign investors has played a significant role in this upward trend. In the past week, foreign institutional investors (FIIs) invested approximately Rs 12,000 crore in Indian markets, while domestic institutional investors (DIIs) poured in around Rs 1,800 crore.
Puneet Singhania, Director at Master Trust Group, noted, "The Nifty has once again surpassed the 21-day moving average after being below it for five consecutive weeks, indicating a bullish outlook. 24,250 is a robust support level for the Nifty, and on the upside, the index may strive to reclaim the psychological 25,000 mark."
Furthermore, Vinod Nair, Head of Research at Geojit Financial Services, stated, "Investors are currently accumulating momentum stocks as the anticipated increase in government capital expenditure may provide a boost to sectors such as infrastructure, capital goods, real estate, cement, and metals in H2FY25."
He further added, "The market trajectory for the next week will be shaped by the release of US payroll and CPI inflation data, which will offer insights into the Fed's upcoming December meeting."
