Weekly Market Outlook: 06-Jan to 10-Jan India
The first week of January 2025 brought some promising news for the stock market, with both the Nifty and Sensex showing positive gains. The Nifty was up by 0.80%, while the Sensex rose by 0.67%. During this time, Foreign Portfolio Investors (FPIs) were net sellers of $(645) Million in Indian equities as we anticipate fresh allocations in the new year.
Let’s take a closer look at how some of the key sectors performed during this week. The Consumer Durables sector saw a significant increase of 4.06%, followed closely by Non-Banking Financial Companies (NBFCs) at 4.00%. The Automobiles sector also showed strong growth with a 3.92% increase.
Out of the 20 sectoral indices analyzed, 17 sectors experienced positive returns while 3 saw negative returns. This positive trend can be attributed to the recovery in consumer-driven sectors like automobiles and fast-moving consumer goods (FMCG) on expectations of potential tax cuts in the upcoming budget. Additionally, oil stocks also showed signs of improvement.
Some standout performers for the week were Consumer Durables, NBFCs, Automobiles, Oil & Gas, and CPSEs, while Realty, Defence, and Banks were at the bottom. Despite these variations, the overall arithmetic average return for all 20 sectors stood at 1.52% for the week.
Looking ahead to the upcoming week, there are several key triggers and events to keep an eye on. The government will need to make decisions regarding capex spending, and we await the announcement of the first estimate of FY25 GDP. Additionally, the Industrial Production (IIP) growth for November 2024 will be revealed, and the focus will be on the cumulative and manufacturing IIP.
Overall, the markets seem to be balancing various factors, including domestic and global economic indicators. The Nifty and Sensex levels will be crucial to monitor, especially with attention on factors like the US Dollar index, RBI interventions, and upcoming data releases such as the FOMC minutes and US unemployment data.
As we navigate the uncertainties and opportunities of the market, staying informed about these triggers and trends will be essential for investors looking to make well-informed decisions in the coming week.
