Market Outlook: Key Factors for Next Week – RBI MPC, PMI, and Global Economic Data
The upcoming week in the Indian market is expected to be shaped by a series of important economic events both domestically and globally. Some key factors to watch out for include the RBI’s interest rate decision, manufacturing and services PMI data, auto sales figures, as well as US job and PMI data, according to experts.
Last week, the stock market saw positive gains following the victory of the BJP-led Mahayuti alliance in the Maharashtra Assembly elections. During this period, Nifty rose by 223 points to close at 24,131, while Sensex went up by 685 points to close at 79,802. Despite this growth, there was still significant market volatility due to global uncertainties. Notably, banking shares led the rally, with Bank Nifty closing at 52,055, marking a 1.80% increase. HDFC Bank, the largest private bank in the country, hit a new all-time high of Rs 1,836 during this period.
Foreign institutional investors (FIIs) reduced their selling activities last week, with net sales amounting to Rs 5,026 crore. Conversely, domestic institutional investors (DIIs) made purchases worth Rs 6,924 crore between November 25 and November 29.
Looking ahead, Vinod Nair, Head of Research at Geojit Financial Services, emphasized the importance of upcoming economic data such as the GDP growth rate for the second quarter of FY25. He suggested that while the repo rate might remain unchanged for now, the central bank could signal a rate cut in February in response to the low growth rate. Additionally, other indicators like service and manufacturing PMI data, auto sales figures, and US job data will also influence market sentiment.
Palka Arora Chopra, Director of Master Capital Services, highlighted that Nifty 50 closed above the 21-day EMA and remained positive for the second consecutive week. She noted that the 23,800-23,850 zone is a critical support level, and a breach below this range could lead to a decline towards 23,400.
Please note that this information has been auto-published from an agency feed without any editorial modifications.
