Share Market: The rise in the share market will continue this week too! Know which factors will affect the stock

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Share Market This Week: A stormy rise was seen in the Indian stock market between December 4 and December 8. BSE’s benchmark index Sensex rose by 2,344.41 points or 3.47 percent. On Friday, the last day of the trading week, the Sensex based on 30 shares rose by 303.91 points or 0.44 percent to reach its all-time high of 69,825.60 points. Nifty also made a new record by crossing 21 thousand. The domestic equity benchmark recorded its longest weekly winning streak in three years. Small and mid-caps underperformed blue-chips but hit fresh record highs, rising 1.16 per cent and 2.35 per cent respectively. Bank Nifty rose by over 5 per cent, highlighting strong investor sentiment in the banking sector. At the same time, in the second week of December, investors will keep an eye on many factors of the stock market. These include domestic macroeconomic data, policy decisions of global central banks including the US Federal Reserve, foreign capital flows and global signals.

What do experts say

Vinod Nair, head of research at Geojit Financial Services, said that despite the RBI maintaining policy status quo, the upgraded GDP growth forecast for FY24 boosted investor confidence. Measures to address liquidity constraints, including reversal of Standing Deposit Facility (SDF) and Marginal Standing Facility (MDF) facilities had a positive impact on the financial situation, leading to a 5 per cent rise in Nifty Bank during the week. IT, consumer, auto and realty sectors performed well due to valuation comfort, festive momentum and strong growth in residential sales. He said mid and small caps continued to outperform due to healthy economic outlook, strong second quarter earnings and improving oil prices.

The effect of these factors will be visible on the market this week

• domestic macroeconomic data

  On the macroeconomic front, India’s Consumer Price Index (CPI) based inflation or inflation rate for November and Index of Industrial Production (IIP) data for October are due to be released on December 12, followed by Wholesale Price Index (WPI) based data. will be issued. Inflation rate on 13th December.

• 7 IPOs are going to come in the market, 3 companies will be listed.

  In the mainboard segment, three new IPOs are opening for subscription in the coming week. India Shelter Finance IPO and DOMS IPO are opening on 13 December, while Suraj Estate Developers IPO is opening on 18 December.

• FII activity

  Foreign institutional investors (FIIs) have returned to the Indian markets due to the country’s strong macroeconomic fundamentals and the strong rally shown by the domestic markets. Foreign investors emerged as net buyers of Indian equities for three of the five sessions last week and invested a total of ₹9285.11 crore, playing a key role in driving market activity. Domestic institutional investors (DIIs) also invested in Indian stocks – with a total of ₹4326.47 crore this week. In November, FIIs finally broke their three-month continuous selling streak, which was due to global headwinds.

• global signal

  This week the policy decisions of the central bank will dominate the global markets. The US Federal Reserve (Fed) will announce its policy decision on December 13, followed by the Bank of England and the European Central Bank on December 14. According to analysts, the outcome of the awaited Fed policy meeting will be important in shaping market sentiments. Investors are optimistic about India’s strong economic growth and this gives India an edge over China. Falling crude oil prices provided much-needed relief to the Indian economy, as a lower oil import bill leads to lower inflation and a more favorable balance of payments. This also becomes a positive factor for oil marketing companies.

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