This decline is expected in the stock market. The market will be keeping an eye on factors like the Monetary Policy Committee meeting and foreign investment. Markets may open lower on Monday following weak GDP data.
According to Harshubh Mahesh Shah, founder of Wealth View Analytics, the main direction of the market is still negative. This week may see a decline in the market. At the same time, the Nifty may touch the 21,900 level by the end of January.
5 Factors That Will Determine Market Movement This Week…
1. MPC meeting: No change in interest rates expected
The Monetary Policy Committee will meet from December 4 to 6 to decide on interest rates. The Reserve Bank of India ie RBI Governor Shaktikanta Das will announce the decision taken in the meeting on December 6 at 10 am.
RBI has kept the repo rate unchanged at 6.5% from February 2023. Market analysts and economists expect the central bank to maintain its current stance to bring India's inflation closer to its target level.
2. FIIs and DIIs: FIIs sold shares worth ₹5,027 crore
In the cash segment, foreign institutional investors (FII's) sold shares worth ₹5,027 crore this week, while domestic institutional investors DIIs bought shares worth ₹6,925 crore. On the closing day, FIIs sold heavily and sold shares worth ₹12,000 crore.
FII sales are lower in November compared to October. In October, FIIs sold a total of ₹1.14 lakh crore. In November it fell to Rs. 45,974 crores. According to experts, they will return to the market only when valuations become more attractive.
However, domestic institutional investors have continued to buy DIIs. Domestic investors have bought around Rs 44 thousand crore so far in November. Earlier in October, domestic investors raised Rs. 1.07 lakh crore was purchased.
3. Global factors: Geopolitical tension due to Russia-Ukraine tension
Geopolitical tensions remain due to Russia-Ukraine tensions. In addition to US monthly factory orders and vehicle sales data, investors will also be watching the unemployment rate and job openings. This data will help the Federal Reserve set interest rates.
4. Domestic data: Data on foreign exchange reserves will be released
Foreign exchange reserves for the week ending November 29 will be released on December 6. Apart from this, HSBC Manufacturing PMI final data will be released on December 2 and HSBC Services PMI data on December 4.
India's GDP growth slowed to 5.4% in the July-September quarter of fiscal 2025, according to data released on November 29. This is the slowest growth in seven quarters. GDP growth has slowed due to weak performance of the manufacturing sector.
5. IPO and Listing: One IPO of Mainboard, 2 in SME
Only three IPOs are slated to open this week, including a property share investment trust (REIT) in the mainboard segment on December 2 for Rs. 353 crore IPO included. Its price band is Rs. 10-10.5 lakhs per unit.
The other two IPOs belong to the SME segment. Nisus Finance's offer is opening on December 4 with a price band of Rs 170-180 per share. Emerald Tire Manufacturers IPO on December 5 at Rs. Will open at a price band of 90-95.
The book-built issue of Security Diagnostics in the Mainboard segment will close on December 3 and will be listed on the stock exchange on December 6.
Disclaimer: The views expressed in this analysis are those of individual analysts or broking firms and not of Bhaskar. We advise investors to consult certified experts before taking any investment decision.
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