This decline in the stock market is expected. The market will keep an eye on factors like Monetary Policy Committee meeting and foreign investment. After the weak GDP data on Friday, the market may open lower on Monday.
According to Harshubh Mahesh Shah, Founder of Wealth View Analytics, the main direction of the market still remains negative. There may be a decline in the market this week. At the same time, Nifty can reach the level of 21,900 by the end of January.
5 factors which will decide the 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. Reserve Bank of India i.e. 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. FII's and DII's: FII's 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 DII's bought shares worth ₹6,925 crore. On the expiry day, FII's made heavy selling and sold shares worth ₹12,000 crore.
FII's selling in November is less as compared to October. In October, FIIs sold a total of ₹1.14 lakh crore. In November it decreased to Rs 45,974 crore. According to experts, they will return to the market only when valuations become more attractive.
However, domestic institutional investors have been continuously buying DII's. Domestic investors have made purchases worth about Rs 44 thousand crore so far in November. Earlier in October, domestic investors had purchased Rs 1.07 lakh crore.
3. Global Factors: Geopolitical tension due to Russia-Ukraine tension
Geopolitical tension remains due to Russia-Ukraine tension. Apart from America's monthly factory orders and vehicle sales data, investors will also keep an eye on unemployment rate and job openings. This data will help the Federal Reserve to decide on interest rates.
4. Domestic Data: Data of 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 will be released on December 4.
According to data released on November 29, India's GDP growth has declined to 5.4% in the July-September quarter of FY 2025. This is the slowest growth in seven quarters. GDP growth has slowed down due to poor performance of the manufacturing sector.
5. IPO and Listing: One IPO of Mainboard, 2 in SME
Only three IPOs are scheduled to open this week, including the Rs 353 crore IPO of Property Share Investment Trust (REIT) in the mainboard segment on December 2. Its price band is Rs 10-10.5 lakh per unit.
The other two IPOs are from the SME segment. Nisus Finance's offer is opening on December 4 with a price band of Rs 170-180 per share. The IPO of Emerald Tire Manufacturers will open on December 5 at a price band of Rs 90-95 per share.
The book-built issue of Suraksha Diagnostics in the mainboard segment will close on December 3 and will be listed on the stock exchange on December 6.
Sensex rose 685 points last week
Between the last trading week (25 to 29 November), the Sensex rose by 685 points. On November 29, the last trading day of the week, the Sensex closed at 79,802 with a rise of 759 points (0.96%). There was a rise of 216 points (0.91%) in Nifty, it closed at the level of 24,131.
Out of 30 Sensex stocks, 26 rose and 4 declined. Out of 50 Nifty stocks, 43 were up and 7 were down. Except NSE Realty and PSU, all closed with gains.
Disclaimer: The views given in this analysis are of individual analysts or broking companies and not of Dainik Frontpage Insights. We advise investors to consult certified experts before taking any investment decision.
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Also read this business related news…
GDP growth declined to 5.4% between July and September: This is the lowest in 21 months, a year ago the economy was growing at the rate of 8.1%.
India's GDP growth has declined to 5.4% in the July-September quarter of FY 2025. This is the slowest growth in seven quarters. GDP growth has slowed down due to poor performance of the manufacturing sector. The National Statistics Office released this data today on 29 November. Read the full news here…
Graphics Source: VaskarAssets
