Weekly Market Outlook (30-Dec to 03-Jan) in India: Forecast and Analysis
Last week saw the Nifty and Sensex on the rise, with gains of 0.96% and 0.84% respectively. Foreign Portfolio Investors, or FPIs, were net sellers of $600 million in Indian equities, citing lack of allocations as a concern. Let’s take a look at how different sectors performed during the week.
In a nutshell, out of the 20 sectoral indices, 13 showed positive returns while 7 were in the negative. Recovery in consumer-driven sectors like auto and FMCG, driven by expectations of tax cuts in the upcoming budget, contributed to these results.
Some notable gainers were the Automobiles, Mobility, Healthcare, FMCG, and Private Banks sectors. On the flip side, Capital Markets and Metals were among the sectors that saw declines. Overall, the arithmetic average of all sectors’ returns stood at 0.47%, with the top 10 sectors delivering +1.21% and the bottom 10 sectors delivering -0.28%.
Looking ahead, keep an eye out for the following triggers in the upcoming week:
1. Small and mid-cap stocks may take the spotlight after positive gains from Nifty, Sensex, Mid-cap index, and small cap index in the previous week.
2. Key corporate actions to watch for include Red Tape, Banco, KPI Green, Garware Tech, Shriram Finance, and Jagson Pharma.
3. Updates on core infrastructure sector, fiscal deficit, and PMI Manufacturing are expected to be announced.
4. FPI triggers will be closely monitored after the previous week’s selling. Fresh allocations will be key, especially as the INR touched a low of ₹85.81/$.
5. Keep an eye out for global data points such as API Crude stocks, initial jobless claims, Caixin PMI, and more.
As we head into the new week, it’s important to watch for market stability, key levels on the Nifty, and upcoming data points that could impact market sentiment. Stay tuned for more updates on the Nifty and Sensex in the coming week!
