Global Trends and FIIs’ Influence on Stock Market Sentiment for the Upcoming Holiday Week
As we head into the upcoming holiday-shortened week, stock market participants are keeping a close eye on global trends and foreign investors’ activities to guide market sentiment. With no major domestic triggers in sight, the market will look to external cues for direction.
Indian equity markets will be closed on Wednesday, December 25, for Christmas, leading to limited market activity throughout the week. As investors navigate through this subdued and volatile environment, it is important to remain cautious and stay alert for developments related to global trends and Foreign Institutional Investors (FIIs).
Several key global economic indicators, such as US bond yields, the performance of the dollar index, initial jobless claims, and new home sales data, are anticipated to influence market direction. Despite recent market weakness, the outlook remains cautiously optimistic. However, continuous selling by FIIs has added pressure on the market.
The BSE benchmark experienced a significant drop last week, losing 4,091.53 points or 4.98%, while the Nifty saw a decline of 1,180.8 points or 4.76%. The shift in FII strategy from buying to selling has influenced market dynamics, according to experts.
Monitoring the rupee-dollar trend and the movement of global oil benchmark Brent crude will also be crucial in determining the market’s trajectory. Additionally, the scheduled expiry of December’s derivative contracts is expected to add to market volatility this week. Market participants will closely observe FII flow trends and global market performance for guidance.
With the festive season approaching and global markets closed for a few days, including a domestic holiday on December 25, market activity is anticipated to be low. In this environment, it is advisable for investors to proceed with caution and remain vigilant about global and FII-related developments.
As we navigate through these uncertain times, let’s stay informed and prepared for any market shifts that may come our way. Stay tuned for the latest updates and insights as we move forward in the holiday week ahead.
