NEW DELHI: As another week of December begins, stock markets will also invoke hopes for investors but also caution. Foreign investors, currency movement and global macroeconomic data announcements will drive investor sentiments for the week. Notably, this week will not have the usual five days of trading as Thursday, December 25 will mark a stock market holiday on account of Christmas. This will be significant as it’s the last complete week ending in 2025. However, an expert quoted by PTI said that market activity could be subdued on account of Christmas and New Year.“This week marks the onset of the year-end festive period and will be holiday-shortened due to the Christmas break, which may keep trading volumes subdued. On the domestic front, markets will track infrastructure output data, along with updates on bank loan growth, deposit growth, and foreign exchange reserves. Currency movement and crude oil prices will also remain important variables,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.Meanwhile, Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm was quoted by PTI saying, “While strong domestic liquidity continues to act as an effective buffer against deeper downside risks, lending resilience to the market structure, the re-emergence of foreign fund inflows is increasingly being viewed as a potential catalyst for the market’s next leg higher, improving overall risk appetite.”Further talking about international factors, he added, “Globally, performance of major markets—particularly the US—will be closely monitored for directional cues.” That said, the durability of the late-week momentum will largely depend on key global macroeconomic indicators, especially the forthcoming US GDP and core personal consumption expenditure (PCE) data, which are expected to provide clearer insights into the health of the US economy amid shifting inflation–growth dynamics, according to Ponmudi R.Last week, the BSE benchmark fell by 338.3 points, or 0.39 per cent, while the Nifty declined by 80.55 points, or 0.30 per cent. Meanwhile, on Friday, the Sensex surged 447.55 points, or 0.53 per cent, to close at 84,929.36, while Nifty advanced 150.85 points, or 0.58 per cent, to end at 25,966.40. “Selling pressure dominated most sessions; however, a recovery in the final trading day—driven by value buying and renewed interest from foreign portfolio investors (FPIs)—helped limit the downside.” Mishra added.Also sharing his insights, Siddhartha Khemka, Head of Research – Wealth Management, Motilal Oswal Financial Services Ltd, said, “This week, we expect markets to trade in a range with a positive bias, following signs of improving FII participation (buying in two continuous trading sessions offering some relief after weeks of relentless selling) and a marginal recovery in INR vs USD. Several global markets will see subdued activity on account of Christmas and New Year holidays.“Key macro data releases during the week include US and UK GDP, US consumer confidence data. Overall, market is likely to remain sideways, with investor focus gradually shifting towards the upcoming Q3 corporate earnings season,” he added.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
