Global Trends and Foreign Institutional Investor Activity Impacting Market this Week
Stock market participants are gearing up for a holiday-shortened week, with markets closed on Wednesday for Christmas. Analysts are highlighting a lack of major domestic triggers, but global trends and foreign investors’ trading activity will be on everyone’s radar.
In the coming week, there are no significant events scheduled domestically, but global economic indicators like US bond yields, the dollar index, initial jobless claims, and new home sales data will play a crucial role in shaping market direction.
Despite recent volatility and ongoing selling pressure from FIIs, market sentiment is cautiously optimistic. The recent shift from FII buying to selling has definitely impacted markets, according to experts.
The rupee-dollar exchange rate and movements in the global oil benchmark Brent crude will be important factors influencing market trends in the days ahead.
As we head into a shortened week due to the holidays, investors will be keeping a close eye on FII flow trends, global market performance, and the scheduled expiry of December’s derivative contracts for potential volatility.
With domestic markets expected to stay subdued and closely watching global cues, market activity is likely to be slow this week. The combination of the festive season and multiple market closures both locally and internationally will contribute to this quieter period.
