Inflation, IIP And Global Economic Data Key Triggers

New Delhi: The market outlook of next week is likely to be shaped by a mix of global cues, domestic economic indicators, and the flow of investments from foreign and domestic institutional investors, according to the experts on Sunday.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart said, "Significant macroeconomic releases—including retail inflation and industrial production data from India, as well as US Core CPI and unemployment figures—are expected to influence overall market sentiment."

In the last week, the Indian stock market ended with gains. This was the third consecutive week when the stock market closed in the green. Nifty closed at 24,677 with a gain of 2.27 per cent or 546 points and Sensex closed at 81,709 with a gain of 2.39 per cent or 1,906 points.

The positive commentary by the Reserve Bank of India (RBI) is being considered as the reason for the rise in the stock market. The central bank has announced a reduction in the cash reserve ratio (CRR) by 0.50 per cent in the December monetary policy. This will increase liquidity in the banking system. RBI also expressed confidence about strong demand and industrial growth.

Apart from this, buying in the stock market by foreign investors is also a big reason. Last week, foreign institutional investors (FIIs) bought about Rs 12,000 crore in the Indian markets and domestic institutional investors (DIIs) bought about Rs 1,800 crore.

Puneet Singhania, Director at Master Trust Group said, "Nifty has again come above the 21-day moving average after trading below it for 5 consecutive weeks, which shows a bullish stance. 24,250 is a strong support for Nifty. On the upside, the index may aim to reclaim the psychological 25,000 level."

"On the upside, the index may aim to reclaim the psychological 25,000 level."

Vinod Nair, Head of Research, Geojit Financial Services, said, "All investors are now accumulating the momentum stocks as the expected pick-up in the government capital expenditure may provide some impetus to infra, capital goods, realty, cement, and metal industries in H2FY25."

"Market direction for next week will be influenced by the release of US payroll and US CPI inflation data, which will give some insights into the Fed's December meeting," he added.

Besides, the rupee-dollar trend and movement of global oil benchmark Brent crude will also be crucial in dictating terms in the market, experts added. "The domestic stock market is likely to be shaped by a mix of global cues, domestic economic indicators, and the flow of investments from foreign and domestic institutional investors.