Ups and downs are expected in the stock market this week. The market will monitor factors ranging from retail and wholesale inflation rates to foreign investment. The Monetary Policy Committee on Friday kept the repo rate unchanged, but cut the CRR by 0.5%, the impact of which could be seen in the market this week as well.
According to Harshubh Mahesh Shah, founder of Wealth View Analytics, the main direction of the market is currently negative. This week may see a decline in the market. Siddharth Khemka, head of wealth management at Motilal Oswal Financial Services, expects the market to remain bullish due to the CRR cut and withdrawal of FIIs.
5 Factors That Will Determine Market Movement This Week… 1. Retail Inflation: Inflation expected to moderate in November
Inflation figures for the month of November will be announced on December 12. Most economists expect inflation to ease in November. Retail inflation rose to 6.21% in October due to rising food prices. This is the highest level of inflation in 14 months. The inflation rate in August 2023 was 6.83%.
In September too, this rate rose to 5.49% due to vegetable prices. Food items contribute about 50% to the inflation basket. Its inflation rose to 10.87% from 9.24% on a month-on-month basis. Rural inflation increased to 6.68% from 5.87% and urban inflation increased to 5.62% from 5.05%.
2. Industrial Production: Figures to be released on December 12
Apart from inflation, industrial and manufacturing production data for October will also be released on December 12. At the same time, data on bank loan and deposit growth for the fortnight ending November 29 and foreign exchange reserves for the week ending December 6 will be released on December 13.
3. US Inflation: Likely to stay around 2.6%
Investors will also be keeping an eye on US inflation data for the month of November. According to economists, the inflation rate is likely to be around 2.6%. The inflation numbers are also important because the Federal Reserve meets on December 17-18. The cut in interest rates will depend on inflation figures.
4. FIIs and DIIs: Foreign investors bought shares worth ₹11,934 crore
For the first time since mid-September, there was a positive change in FII flows on a weekly basis. Foreign Institutional Investors (FII's) have inflowed Rs. 11,934 crore net purchase, while in October-November Rs. 1.6 lakh crore has been sold.
At the same time, Domestic Institutional Investors (DII's) in December contributed a net Rs. 1,792 crore shares were bought. In the last two months they have spent Rs. 1.51 lakh crore net purchase. Overall, they remain buyers on a monthly basis till August 2023.
5. IPO and Listing: 6 issues are opening in Mainboard segment
Along with the five mainboard IPOs, six issues in the SME segment will open for subscription. The IPOs of Vishal Mega Mart, Sai Life Sciences and Mobiquik will open on December 11, while the IPO of Rekha Jhunjhunwala-backed Inventurus Knowledge Solutions will open on December 12. Gemological Institute's IPO is coming up on 13th December.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
