IIP data from Monday Fed minutes will guide FII stock market
The Indian stock market closed with weakness this week. Now investors are keeping an eye on some important domestic and global signals, which are expected to decide the direction of the market in the coming days.
This week, industrial production (IIP) data, minutes of the US Federal Reserve (Fed) meeting, movement of the rupee and activities of foreign investors (FIIs) will be important triggers for the stock market.
The Indian stock market closed with a decline on Friday. Investors booked profits due to lack of new signals. Besides, the impact of mixed signals and cautious environment at the global level was also clearly visible on the markets.
BSE Sensex fell 367.25 points or 0.43 percent to close at 85,041.45. At the same time, Nifty closed at 26,042.30 with a decline of 99.80 points or 0.38 percent. During this period, small and medium stocks were also under pressure. BSE Midcap index fell 0.18 percent and Smallcap index fell 0.34 percent.
Market experts believe that the market trend will remain sluggish in the near future. He says that due to low liquidity (lack of cash) and waiting for important economic data, the market may remain in a limited range next week. According to experts, if Nifty remains above the support level of 26,000 to 25,800, then the market environment may remain positive.
He said that on the upside, there is resistance for Nifty near 26,200 and after that there is a level of 26,500. Whereas on the downside there is support at 26,000 and then 25,800. If there is a strong decline below 25,800, the selloff may extend in the short term.
A big signal for the coming week will be India’s industrial production data. Index of Industrial Production (IIP) data for November 2025 is due to be released on December 29. Another important global signal will come from America. There the Federal Reserve will release the minutes of its Federal Open Market Committee (FOMC) meeting on December 31.
In the December policy meeting, the Fed had cut interest rates by 25 basis points to 3.75 percent. This indicates continuation of his soft policy. Investors will try to understand from these minutes what the path of interest rates may be going forward and what the Fed thinks about inflation and economic growth.
The movement of the Indian rupee will also be important for investors. On Friday, the rupee weakened by 19 paise and closed at 89.90 against the dollar. Since no major domestic policy announcement is expected this week, the market may remain cautious.
Experts believe that during this period, there will be movement only in some specific stocks, while the indices of the entire market may remain within a limited range, because investors will take further decisions only after looking at the economic data, global signals and the trend of foreign investment.
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