The stock market also remained bullish in the week ending January 3. This was the second consecutive week when the market saw gains. Buying in auto, FMCG, pharma and oil & gas stocks along with investment by domestic institutional investors supported the market. The Nifty 50 index rose 0.8% to 24,005 during the week, and the BSE Sensex rose 0.67% to 79,223. The Nifty Midcap and Smallcap 100 indices outperformed the benchmark indices, rising 1.67% and 1.48% respectively. Let us know which factors will play an important role in deciding the direction of the market in the new starting week…
Q3 earnings
In the new week, all eyes will be on the companies’ earnings for the December 2024 quarter. Tata Consultancy Services’ December quarter results will be released on January 9 and Avenue Supermarts’s on January 11. Among other companies, Tata Elxsi, Indian Renewable Energy Development Agency, One MobiKwik Systems, CESC, GM Breweries, Transformers & Rectifiers (India), GTPL Hathway, Yash HighVoltage, GNA Axles, PCBL and Valecha Engineering will also release quarterly earnings in the coming week. Will do.
FOMC meeting minutes
Globally, the focus will be on the minutes of the FOMC meeting held in December, in which the US central bank Federal Reserve cut interest rates by 25 basis points. The Fed can make only two rate cuts in the year 2025. Apart from this, many economic data points like US unemployment rate, non-farm payroll, JOLTs data of job joining and leaving, ADP employment change, challenger job cuts, vehicle sales and factory orders will also be monitored.
FPI started the new year with selling, withdrew ₹ 4285 crore from shares in the first 3 days of January.
global economic data
Investors will be keeping an eye on services PMI data for December from several developed and developing countries. Inflation and PPI from China; Unemployment rates, PPI and retail sales from Europe; Market participants will also keep an eye on household spending data from Japan.
oil prices
After fluctuating in the range of $ 5 per barrel for the last few months, oil prices are seeing a rise again. Brent crude futures, the international oil benchmark, closed at $76.51 a barrel, the highest level since mid-October. It has increased by 3.7% last week. This is because China is expected to provide a stimulus package to boost economic growth and America is expected to cut interest rates further by 2025.
domestic economic data
The focus of market participants in the domestic market will be on the final HSBC Service PMI data for December to be released on January 6. According to initial estimates, the services PMI reached 60.8 in December, up from 58.4 in November. Apart from this, preliminary estimates for the growth of the entire year will also be announced next week on January 7. The Reserve Bank of India has estimated that the economy will grow at a pace of 6.6% in FY 2025, while the growth in FY 2024 was 8.8%. Some analysts believe that a possible increase in capital expenditure and improvement in rural demand could support the growth figures in the second half of FY2025.
Industrial production and manufacturing output data for November, and foreign exchange reserves data for the week ending January 3 will be released on January 10.
The activity of FII (Foreign Institutional Investor) will also be monitored next week. FIIs sold shares worth over Rs 11,000 crore in the cash segment in the week ending January 3. In December, he had sold shares worth about Rs 17,000 crore, which was fully compensated by DII. DII bought shares worth Rs 34,200 crore in the same month. NSDL data showed that FIIs bought shares worth Rs 427 crore in equities in 2024. DIIs (domestic institutional investors) bought shares worth Rs 9,254 crore last week.
The US dollar index crossed the 109-point level for the first time since November 2022, closing at 108.92, up 0.85 percent at the end of last week. The index continued its uptrend for the fifth consecutive week, while the US 10-year Treasury yield remained above 4.5%. The yield stood at 4.602% on Friday.
Meanwhile, the Indian rupee continued to remain weak and weakened by 0.44% during the week to 85.74 against the US dollar. This is the lowest level ever. The rupee continued to decline for the ninth consecutive week.
m-cap of 4 out of top 10 Sensex companies decreased by ₹96605 crore, HDFC Bank suffered the biggest loss.
Indobell Insulation IPO, Standard Glass Lining Technology IPO will open in the new week on January 6. BRGoyal Infrastructure IPO, Delta Autocorp IPO, Quadrant Future Tek IPO, Avax Apparels And Ornaments IPO and Capital Infra Trust InvIT will open on January 7. Indo Farm Equipment IPO will be listed on BSE, NSE on January 7 in the week starting from January 6. Technichem Organics will be listed on BSE SME on the same day. Shares of Leo Dry Fruits and Spices will be listed on BSE SME on January 8. Shares of Davin Sons and Parmeshwar Metal will be listed on BSE SME on January 9. Fabtech Technologies will be listed on BSE SME on January 10.
Here are the key corporate actions of next week…
