The Indian equity market experienced one of its most remarkable weeks of 2024, with the Nifty and Sensex indices hitting unprecedented highs of 24,592.20 and 80,893.51, respectively. They closed the week at 24,502.15 and 80,519.34, reflecting gains of 0.73% for the Nifty and 0.65% for the Sensex. This marked the sixth consecutive week of gains for both indices, with the Nifty surpassing the 24,500 mark for the first time.
Performance of Small-Cap and Mid-Cap Stocks
While large-cap stocks thrived, small-cap and mid-cap stocks lagged, showing relatively weaker performance. However, several Public Sector Undertaking (PSU) stocks exhibited notable gains, contributing to the market’s overall positive sentiment.
Domestic Influences on Market Outlook
The outlook for the coming week will be shaped by a mix of domestic and international factors. Domestically, key points of interest include forthcoming budget-related announcements, Q1 FY25 results, monsoon updates, and the inflow of foreign institutional investments (FII). These factors are anticipated to play a crucial role in guiding investor decisions.
Global Economic Indicators and Their Impact
On the global front, China’s upcoming GDP and Index of Industrial Production (IIP) announcements are eagerly awaited, with speculation about a potential significant economic stimulus that could affect the metal sector. Additionally, market watchers will be closely monitoring the US Federal Reserve Chairman’s speech, US retail sales figures, and macroeconomic data from Japan, all of which are expected to influence global market movements and investor sentiment.
Expert Insights on Market Trends
Vinod Nair, Head of Research at Geojit Financial Services, provided insights into the market’s trajectory, stating, “We expect stock-specific movements to gain traction due to the ongoing earnings season; IT, in particular, will be in the spotlight due to a strong start to earnings and a positive outlook.”
Arvinder Singh Nanda, Senior Vice President of Master Capital Services, highlighted the significance of Nifty’s breakout from the psychological resistance level of 24,500 on the daily chart, suggesting a continuation of the bullish trend into the next week. “Despite this positive trend, buying on dips is expected to provide resilience to the market. However, strong upward movements may attract profit booking, making a sustained rally challenging,” Nanda added.
Key Takeaways for Investors
Investors should closely monitor the above factors to make informed decisions. The combination of domestic and international economic indicators, expert opinions, and stock-specific trends will be critical in navigating the market in the coming weeks. Maintaining a balanced approach and being vigilant about market signals will be essential for capitalizing on opportunities and mitigating risks in the dynamic Indian equity market.
