Global Market Trends, Foreign Investors' Trading Activity To Influence Sentiments In The Market, Say Analysts

The BSE Sensex plunged close to 5 per cent or 4,091.53 points during the trading session last week, while the NSE Nifty50 tanked 1,180.8 points or 4.76 per cent

Market participants will be on the lookout for global market trends and the trading activity of foreign investors in the week, analysts noted. The experts pointed out that certain economic indicators are expected to be released in the week such as dollar index performance, new home sales data, and US bond yields, among others.

The equity markets are set to witness a shortened trading week ahead as the investors gear up to celebrate the festival of Christmas, reported PTI. No trading will take place on Wednesday, December 25, 2024.

Largely, no major economic announcements are lined up for the week. Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, noted, “Amid heightened volatility and persistent FIIs (Foreign Institutional Investors) selling pressure, investors are likely to adopt a cautious stance. Despite recent weakness, the market outlook remains cautiously optimistic. However, relentless selling by FIIs has added to market pressure.”

Notably, the equity markets took a major beating last week. The BSE Sensex plunged close to 5 per cent or 4,091.53 points during the trading session last week, while the NSE Nifty50 tanked 1,180.8 points or 4.76 per cent.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, stated, “The sudden change in FII strategy from buying to selling has impacted markets.” Further, the rupee-dollar fluctuations and changes in the global oil benchmark Brent crude are expected to drive sentiments in the market.

Ajit Mishra, SVP, Research, Religare Broking Ltd, noted, “Looking ahead, the week is shortened due to holiday, and participants will closely monitor FII flow trends and global market performance for direction. Additionally, the scheduled expiry of December's derivative contracts may amplify volatility.”

Sharing an outlook, Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said that the domestic markets are projected to remain weak and will keep a close track of global indicators as the environment remains volatile.

“With the festive season approaching and global markets closed for 2-3 days, including a domestic holiday on December 25, market activity is expected to be low this week,” Khemka shared.