Market Outlook: RBI MPC, PMI and Global Economic Data Key Factors for Next Week – SEO Optimization
The outlook for the Indian market next week is looking to be influenced by some significant economic events. Experts are keeping an eye on the RBI’s interest rate decision, manufacturing and services PMI data, auto sales, and US job and PMI data. Last week, the stock market saw a positive trend, thanks in part to the victory of the BJP-led alliance Mahayuti in the Maharashtra Assembly elections.
For context, the Nifty rose by 223 points or 0.94%, closing at 24,131, while the Sensex saw a rise of 685 points or 0.87%, closing at 79,802. Despite this positive performance, the market experienced some volatility due to global uncertainties. Banking shares were a key player in this rally, with Bank Nifty closing at 52,055 with a 1.80% increase.
During the same period, HDFC Bank shares hit a new all-time high of Rs 1,836. Foreign institutional investors (FIIs) were seen selling in the cash market last week, with sales worth Rs 5,026 crore between November 25 and November 29. On the other hand, domestic institutional investors (DIIs) made purchases totaling Rs 6,924 crore.
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that upcoming economic data will drive market movements. With the GDP growth rate at 5.4% in the second quarter of FY25, investors are awaiting the RBI MPC decision. While the repo rate is expected to remain unchanged, the central bank might hint at a rate cut in February due to the low growth rate. Additionally, other economic indicators like service and manufacturing PMI data, auto sales, and US job data will shape market momentum.
Palka Arora Chopra, Director of Master Capital Services, highlighted that Nifty 50 closed above the 21-day EMA and respected the 23,800 support level, ending the week positively for the second time in a row. The 23,800-23,850 zone is a critical support level, and a breach below this could lead to a fall towards 23,400.
