What is the stock market outlook for the holiday week in India?

Stock markets are expected to trade in a range-bound manner during the holiday-shortened week, influenced by foreign investor activity and global economic data.

Which global economic data will impact Indian markets?

Key global macroeconomic cues, particularly US GDP and core personal consumption expenditure (PCE) data, will be closely monitored for their impact on Indian markets.

What has improved market sentiment recently?

Lower-than-expected US inflation data has improved market sentiment, reviving expectations of further monetary easing by the US Federal Reserve.

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Holiday Week: Range-Bound Markets Expected

21 Dec

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Summary

Stock markets to trade in a range this week due to holidays.
Foreign investor activity and global data to influence sentiment.
Markets anticipate US GDP and PCE data for economic health clues.

Holiday Week: Range-Bound Markets Expected

Indian stock markets anticipate a range-bound trading week, shortened by the Christmas holiday. Trading activity is expected to be subdued globally due to festive breaks. Market sentiment will be driven by foreign investor movements and key global macroeconomic data releases.

Domestically, investors will closely watch infrastructure output data, bank loan and deposit growth, and foreign exchange reserves. The movement of the Indian Rupee against the US Dollar and crude oil prices are also significant factors. A constructive market sentiment has emerged following lower-than-expected US inflation data, which has revived hopes of further monetary easing by the US Federal Reserve.

Last week, the BSE Sensex and Nifty experienced slight declines but saw a recovery on the final trading day, aided by value buying and renewed interest from foreign portfolio investors. This week, focus is expected to gradually shift towards the upcoming Q3 corporate earnings season, with anticipation of continued positive FII participation.