Market Outlook this week:The direction of the stock market this week will be decided by factors like macroeconomic data, activities of foreign investors and global trends. Analysts have expressed this opinion. This week is also the beginning of a new calendar year and month. During the week, auto companies manufacturing vehicles will release monthly sales data.On this Friday, the rupee recorded its biggest fall in almost two years and reached the lowest level of its lifetime. Investors will keep an eye on the condition of the rupee. Last week, the 30-share BSE Sensex rose 657.48 points or 0.84 percent. At the same time, Nifty of National Stock Exchange had a gain of 225.9 points or 0.95 percent.
Experts’ opinion
Santosh Meena, Head of Resources, Swastika Investmart Limited said thatContinued selling by foreign institutional investors (FIIs) is weighing on Indian markets, and their stance in the new year could shape near-term trends. During this period, monthly auto sale data will also be monitored. As the time for third quarter (Q3) earnings report is getting closer, quarterly updates of companies will start coming gradually. These updates will help shape market expectations.
Also read: Market Cap: Market cap of these 6 companies including HDFCBANK, Reliance Industries increased by 86848 crores, who caused the loss?
Auto stocks are going to be in the news during the week amid the announcement of monthly sales data. Ajit Mishra, Research Head, Reglier Broking Limited, says that as soon as the new calendar year and month begins, investors will keep an eye on the auto sales figures. If there are no significant events, investors will generally keep an eye on foreign institutional investors (FII) inflows and currency movements. Especially when the position of rupee is weakening against the US dollar. These factors can play an important role in shaping the direction of the market in the near future.
Vinod Nair, head of research, Geojit Financial Services, believes that as companies start reporting their quarterly results, investors will study the data carefully to understand how the market might react. If companies have good results, it can create positive sentiment in the market, while weak results can have a negative impact. Apart from this, pre-Budget expectations will also influence investors’ decisions, causing them to change their investment strategies.
Also read: Year Ender 2024: 2024 was very volatile for the stock markets, did investors benefit?
Additionally, PMI (Purchasing Managers’ Index) data for India, US and China, as well as unemployment claims in the US, will impact investor sentiment, shaping their investment decisions. Last week there was stability in the market, but some volatility was also seen. FIIs had lower activity as they traded in lower volumes due to holidays and remained mostly sellers.
Punit Singhania, Director, Master Trust Group believes that the market trend will be guided by key domestic and global economic data like India’s infrastructure data, Manufacturing PMI, UK S&P Global Manufacturing PMI, US Initial Unemployment Claims.Siddharth Khemka, Research Head, Motilal Oswal Financial Services said that with no significant triggers in the near future, the market is likely to remain range-bound.
