Market Outlook

Mumbai: Macro-economic data points along with the direction of foreign fund flows and the US Fed’s monetary policy are expected to influence the Indian equity market’s trajectory next week, analysts opined.

Additionally, the rupee’s movement against the American dollar and the progress of the US-China trade deal, as well as crude oil price fluctuations, will impact investors’ risk-taking appetite.

“The major trend which is developing is a rally in the commodity markets, especially metals. The US dollar has begun to see overhead supply, EU economic data is improving. A phase 1 US-China trade deal and dovish US Fed may make this trend more visible,” Edelweiss Professional Investor Research’s Chief Market Strategist Sahil Kapoor told IANS.

“As suggested earlier, Nifty has entered a consolidation phase which played out last week. It now seems that fresh up move may begin as we enter deeper into December month.” In terms of macro-data, investors will look forward to the release of industrial production, retail and wholesale inflation figures next week.

These data points hold significance as the Reserve Bank in its last monetary policy kept lending rates intact thereby prioritizing rising inflation over grim economic growth.

Next week, the National Statistics Office is slated to release the macro-economic data points of Index of Industrial Production and Consumer Price Index on December 12, followed a day later by Wholesale Price Index and India’s November trade figures. “We expect the inflation to remain close to or above 5 percent by March 2020, which means that a rate cut in the next MPC in February 2020 is highly unlikely,” Motilal Oswal Financial Services’ Retail Research Head Siddhartha Khemka said. (IANS)

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