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Key Factors Impacting Indian Stock Market Next Week

Indian Financial Markets

Genre : Financial Markets

The Indian stock market ended the first week of 2024 with mixed results; the Nifty saw a slight decline of 0.1%, while the midcap index saw increases. Of all the industries, real estate was the most successful, rising by a strong 7%. Many variables are at play as investors prepare for the coming week, including domestic and international macroeconomic data, global bond yields, crude oil inventories, movement in the dollar index, and the actions of both domestic and foreign institutional investors.

  1. INR vs. USD
    In contrast, the Rupee had a solid start to 2024 until suffering a setback on Friday, which led to a little drop week over week (WoW). This change was aided by the dollar’s appreciation, which was fuelled by anticipation of early rate reduction in the US. The INR closed 0.1% higher at 83.15 against the USD than it did at 83.23 during the previous session.
  2. Announcement of Q3 FY24 Earnings
    On January 11, leading IT (Information Technology) companies Tata Consultancy Services (TCS) and Infosys are scheduled to release their quarterly results, with Wipro and HCL Technologies following suit. These results, together with those of HDFC (Housing Development Finance Corporation) AMC and HDFC Life Insurance Company, will be eagerly watched by the market. It is expected that the results would impact market mood and offer perceptions on the state of the economy as a whole.
  3. Corporate Actions
    Monday will witness crucial board meetings for Chambal Fertilizers & Chemicals and Bajaj Auto, discussing and potentially authorizing share buybacks. Additionally, the 1:1 bonus share allocation of Integra Essentia and Newgen Software Technologies is scheduled for January 11, marking an important date for investors.
  4. Influence of FII and DII (Domestic Institutional Investors) Action
    According to Friday’s closing statistics, foreign institutional investors (FIIs) purchased stocks worth INR 1,697 crore, making them net purchasers. On the other hand, at INR 3,498 crore, domestic institutional investors (DIIs) were net sellers. The actions of both FIIs and DIIs are anticipated to have a major impact on the market’s performance on Monday.
  5. Upcoming IPOs
    On January 9, Jyoti CNC Automation is scheduled to launch its Initial Public Offering (IPO), with a share price ranging from Rs 315 to Rs 331. The IPO is a new stock offering with a value of Rs 1000 crore. To add to the excitement and prospective investment opportunities, two SMEs, IBL Finance Limited and New Swan Multitech Limited, are preparing to launch their initial public offerings (IPOs) in the upcoming week.
  6. Bond Yields
    The yield on Indian government bonds increased at the beginning of the year, the biggest weekly increase in three months. The yield of the 10-year Indian government bond closed at 7.2348%, up 6 basis points over the course of the week. This spike is explained by the US yields’ recent upward trend, which was set off by positive economic data. With the yield on US 10-year bonds rising above 4%, expectations of substantial rate cuts by the Federal Reserve until 2024 have decreased.
  7. Gold
    Despite a resilient dollar and rising bond yields, gold managed a slight gain on Friday, closing the week at Rs 62,579 per 10 grams on MCX. Conversely, silver slipped to Rs 72,580. Globally, gold futures on Comex and silver inched up slightly to $2,052.60 and $23.385, respectively. Analysts predict gold to trade within the range of $2017-$2070 with a bearish tilt, while silver may dip to $21.80 in the short term. The MCX February gold futures have support at Rs 61,950-61,400 and resistance at Rs 63,080-63,320. Similarly, for MCX March silver futures, support is at Rs 71,080-69,900, with resistance at Rs 74,140-75,000, signalling continued volatility in these precious metals.
  8. US Markets
    The S&P closed the week at 4,697.24, up 0.18%, while the Dow 30 finished the week at 37,446.10, up 0.07%. These results were consistent with the US markets finishing the week in moderate gains. On Monday, Indian markets are likely to follow the lead from US markets. GIFT Nifty Futures movement on Tuesday would provide an early clue as to the direction of the Nifty50.

Conclusion

In summary, a variety of factors will be influencing investor sentiment throughout the coming week, making it an exciting one for Indian markets. To navigate the volatile terrain of the Indian financial markets in 2024, investors will need to be alert and flexible. This will include monitoring business profits, initial public offerings (IPOs), currency changes, and global economic indicators.


Indrajeet Singh
Indrajeet Singh
The mastermind behind IQuanta, Indrajeet Singh is an expert in Quant and has devised some ingenious formulae and shortcuts to significantly cut down on the time taken to solve a problem

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