2 days ago
- copy link
There may be a decline in the stock market this week. The market will keep an eye on data from FII-DII flows and upcoming IPO to auto sales.
5 factors which will decide the market movement this week…
1. Global Factor: America’s weekly job data will come
This week, investors will keep an eye on America’s weekly job data and monthly vehicle sales data. Jobs data will come on January 2 and vehicle sales data will come on January 3. Apart from this, the final PMI numbers of many countries including America, Japan, China and Euro Zone for the month of December will also be monitored.
2. Domestic Factor: Data on foreign exchange reserves will be released
Fiscal deficit and infrastructure output for November, as well as external debt numbers for Q3CY24, will be announced on December 31. The final HSBC Manufacturing PMI figures for December will be announced on January 2.
Foreign exchange reserves for the week ending December 27 will be released on January 3. Foreign exchange reserves declined to $644.39 billion in the week ended December 20, which is $8.48 billion less than $652.87 billion in the previous week.
3. Auto Sales: Growth in passenger vehicle segment expected to be single digit
Auto sales data for the month of December will be released in the beginning of January. Hence, auto stocks including Tata Motors, Maruti Suzuki India, Ashok Leyland, Mahindra & Mahindra, Eicher Motors, Hero MotoCorp, Bajaj Auto, TVS Motor and Escorts Kubota will be in action next week.
Most experts expect single digit growth in two-wheeler and passenger vehicle segment sales with good growth in tractor sales, but commercial vehicle sales are likely to be lower in December on a year-on-year basis.
4. FII’s and DII’s: FII’s are not Sold worth Rs 2.97 lakh crore
FIIs (foreign institutional investors) remained net sellers last week also. They sold Rs 6,323 crore, taking the total outflow in the cash segment in December to Rs 10,444 crore. This is the third consecutive month of selling, but it is less compared to October and November.
This year they sold Rs 2.97 lakh crore. Experts expect FIIs to remain sellers in early 2025 given the rising US dollar index and bond yields, but their buying will depend on economic growth and earnings.
On the other hand, DIIs (domestic institutional investors) continued their buying for the week, month and year and bought shares worth Rs 10,928 crore, Rs 27,474 crore and Rs 5.2 lakh crore respectively.
The market has grown by more than 9% so far in 2024. Without the support of DIIs, the market would have had a negative year. Experts expect DII flows to increase in 2025.
5. IPO and Listing: One in mainboard segment, three IPOs in SME
This week, 4 IPOs will come in the market, out of which one IPO is from the mainboard segment. Indo Farm Equipment IPO worth Rs 260 crore will open on December 31. Its price band is Rs 204-215 per share.
In the SME segment, the IPO of Technikem Organics will be launched on December 31. The IPO of Dry Fruits and Spices Trading will come on January 1 and Fabtech Technologies Cleanroom will come on January 3.
In the mainboard segment, Ventiv Hospitality, Senores Pharmaceuticals and Carraro India will list on the stock exchange on December 30. After this, the listing of Unimech Aerospace and Manufacturing will take place on 31st December.
Sensex closed last week rising 658 points
Last week, Sensex saw a rise of 658 points. On the last trading day of the week i.e. December 27, the Sensex closed at 78,699 with a gain of 226 points. Nifty also gained 63 points and closed at the level of 23,813.
Out of 30 Sensex stocks, 20 rose and 10 declined. Out of 50 Nifty stocks, 30 rose and 20 declined. In the NSE Sectoral Index, the Pharma sector closed with the highest gain of 1.30%.
