Market Insights: Key Factors Influencing Indian Markets Next Week
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New Delhi, Dec 1 (NationPress) The Indian market's outlook for the upcoming week will be influenced by key domestic and global economic events, including the RBI's interest rate decision, as well as manufacturing and services PMI data, auto sales, and job figures from the US, according to experts.
In the previous week, the stock market ended positively following the BJP-led alliance Mahayuti's victory in the Maharashtra Assembly elections. During this timeframe, Nifty rose by 223 points or 0.94 percent to close at 24,131, while Sensex climbed by 685 points or 0.87 percent to finish at 79,802.
Nevertheless, the market experienced considerable volatility due to global uncertainties. Banking stocks were pivotal in this upward trend, with Bank Nifty closing at 52,055, marking an increase of 920 points or 1.80 percent. During this period, shares of HDFC Bank, the largest private bank in the country, reached a new all-time high of Rs 1,836.
Last week saw a reduction in selling by foreign institutional investors (FIIs) on a weekly basis. Between November 25 and November 29, FIIs sold Rs 5,026 crore in the cash market. In contrast, domestic institutional investors (DIIs) made purchases totaling Rs 6,924 crore.
According to Vinod Nair, Head of Research at Geojit Financial Services, "Market movements will hinge on forthcoming economic data. The GDP growth rate for the second quarter of FY25 stood at 5.4 percent. This will likely impact the market, but investors are particularly focused on the RBI MPC. It is anticipated that the repo rate will remain steady this time, but given the modest growth rate, the central bank might hint at a potential rate cut in February.
Additional economic indicators, such as service and manufacturing PMI data, auto sales, and US job data, will also capture investors’ attention and play a role in shaping market momentum," he added.
Palka Arora Chopra, Director of Master Capital Services, stated, "Nifty 50 has closed above the 21-day EMA, maintaining the 23,800 level as support, and has ended positively for the second consecutive week. The 23,800-23,850 zone remains critical support; a drop below this could lead to a decline towards 23,400."
