The stock market may see a decline this week. The market will keep an eye on FII-DII flow and upcoming IPO to auto sales data. 5 factors that will decide the market movement this week… 1. Global factor: US weekly job data will come This week, investors will keep an eye on US weekly job data and monthly vehicle sales data. Job data will come on January 2 and vehicle sales data on January 3. Apart from this, the final PMI numbers of many countries including the US, Japan, China and Eurozone for the month of December will also be monitored. 2. Domestic factor: Foreign exchange reserves data 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 data 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 fell to $644.39 billion in the week ended December 20, down by $8.48 billion from $652.87 billion in the previous week. 3. Auto Sales: Passenger vehicle segment growth expected to remain in single digits Auto sales data for the month of December will be released in early 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 remain low in December on a year-on-year basis. 4. FII’s and DII’s: FII’s sold Rs 2.97 lakh crore FIIs (foreign institutional investors) remained net sellers last week as well. They sold Rs 6,323 crore, taking the total outflow in the cash segment to Rs 10,444 crore in December. This is the third consecutive month of selling, but it is less than 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 purchases will depend on economic growth and earnings. On the other hand, DIIs (domestic institutional investors) continued their purchases 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 in SME This week, 4 IPOs will come in the market, out of which one IPO is from the Mainboard segment. Indo Farm Equipment’s IPO of Rs 260 crore will open on December 31. Its price band is Rs 204-215 per share. In the SME segment, Technichem Organics’ IPO will be launched on December 31. Dry Fruits & Spices Trading’s IPO will come on January 1 and Fabtech Technologies Cleanroom’s IPO will come on January 3. In the Mainboard segment, Ventive Hospitality, Senores Pharmaceuticals and Carraro India will be listed on the stock market on December 30. After this, Unimec Aerospace & Manufacturing will be listed on December 31. Sensex closed with a gain of 658 points last week Last week, the Sensex saw a rise of 658 points. On the last trading day of the week i.e. 27th December, Sensex closed at 78,699 with a gain of 226 points. Nifty also rose by 63 points and closed at 23,813. Out of 30 Sensex stocks, 20 rose and 10 fell. Out of 50 Nifty stocks, 30 rose and 20 fell. In the NSE sectoral indices, the pharma sector closed with the highest gain of 1.30%.
