Domestic stock markets closed with gains on Friday, December 19, after 4 days of decline. The US retail inflation data for November being lower than expected has strengthened expectations of further interest rate cuts by the Federal Reserve. Due to this, investors’ inclination towards shares increased. On Friday, the Sensex closed 447.55 points or 0.53 per cent higher at 84,929.36. Nifty closed at 25,966.40 with a gain of 150.85 points or 0.58 per cent.
On a weekly basis, the Sensex fell by a total of 338.3 points or 0.39 per cent, while the Nifty lost 80.55 points or 0.30 per cent. Let us know on the basis of which factors the movement of the market will be decided in the new week.
domestic economic data
According to news agency PTI, Ajit Mishra, Senior Vice President (Research) at Religare Broking Limited, says, ‘Business may remain limited this week due to the last festival of the year, Christmas. At the domestic level, the market will keep an eye on data related to infrastructure sector as well as data related to bank credit growth, deposit growth and foreign exchange reserves.
movement of rupee
On Friday, the rupee strengthened by 53 paise and closed at Rs 89.67 against the US dollar. According to Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan, the rupee is likely to fall due to selling pressure from foreign investors and jitters over the delay in the India-US trade agreement. But weakness in US dollar index and crude oil prices may support the rupee at lower levels.
crude oil price
Global oil benchmark Brent crude fell 0.37 percent to $59.60 a barrel. Oil prices fell on oversupply concerns and expectations over progress toward a possible peace deal with Ukraine. US President Donald Trump has said that after talks with the President of Ukraine and European leaders, an agreement to end the war is closer than ever.
attitude of foreign investors
According to stock market data, foreign institutional investors (FIIs) were net buyers in the market. He bought shares worth a net Rs 1,830.89 crore on Friday. Now it remains to be seen what stance he adopts in the new trading week.
Global macroeconomic data
In the new week, GDP, Core Personal Consumption Expenditure (PCE) data, ADP employment data and weekly unemployment claims data will be released from America. Besides, Britain’s GDP data will also be released. Market participants will keep a special eye on these.
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