Weekly Market Outlook: Dec 23 – Dec 27

Last week was a bit rough for the stock market, with Nifty and Sensex both down around 5%. Foreign Portfolio Investors (FPIs) were net sellers, which added to the downward trend. Let’s take a closer look at how different sectors fared during the week.

Out of the 20 sectors we tracked, only Nifty Healthcare managed to stay positive, with the rest all showing negative returns. The overall market took a hit after concerns about the trade deficit and the US Federal Reserve indicating slower rate cuts in 2025.

The worst performing sectors included PSU Banks, Energy, CPSE, Oil & Gas, and Metals. In fact, 13 sectors fell by more than 4%, and 11 sectors fell by more than 5%. On average, sector returns were at -4.52%, with the top 10 sectors doing slightly better than the bottom 10.

To add to the market turmoil, Nifty VIX spiked up, indicating heightened market volatility and panic among investors.

Looking ahead, here are some key events to watch out for in the upcoming week:

– Corporate actions like dividends, rights issues, and splits for companies like Vedanta and Dhanalakshmi Bank.
– RBI to announce CAD for Q2FY25, which is expected to be 1.6% of GDP but could rise to 2.2% in Q3FY25.
– India’s forex reserves will also be announced, potentially impacting RBI interventions.

Considering the market’s recent performance and upcoming triggers, it will be interesting to see how Nifty and Sensex react in the coming week. Stay tuned as we navigate through these volatile times together.