Global events, inflation data, FII trends likely to drive Indian markets next week

Mumbai: The Indian stock market is set for a key week ahead, with investors closely watching a mix of domestic and global factors that could shape market sentiment.

Inflation data, foreign investor activity, crucial policy meetings in the US, and India’s ongoing trade negotiations with major global partners are expected to play a central role in determining market direction.

Additionally, fresh developments in India–Russia relations and movement in key economic indicators such as loan growth and forex reserves are likely to keep traders on alert.

Russian President Vladimir Putin’s visit to India resulted in 16 new agreements between the two countries, covering defence, trade, the economy, healthcare, education, culture, and media.

Putin assured that Russia is ready to provide India with a stable and uninterrupted supply of fuel. His statement comes at a time when India is also negotiating a trade deal with the United States, which has urged New Delhi to reduce its purchases of Russian oil.

Talks on an India-US trade agreement are also expected to intensify next week, with a delegation led by Deputy US Trade Representative Rick Switzer set to arrive in New Delhi.

Both sides are working on a multi-phase deal, with the first phase aiming to roll back retaliatory tariffs that were imposed after the Trump administration raised duties on Indian goods.

In the upcoming week, traders and investors will be closely watching India’s inflation data, which will be released on December 12.

This comes after the country recorded a record-low CPI inflation of 0.25 per cent in October. Markets will also monitor data on loan growth, deposit growth, and foreign exchange reserves to assess the overall economic outlook.

Meanwhile, the Indian stock market ended higher on Friday, as investor sentiment improved after the Reserve Bank of India reduced the repo rate by 24 basis points and announced fresh liquidity support worth Rs 1.45 lakh crore through bond purchases and dollar–rupee swaps.

The RBI’s move signalled a strong push to support economic growth and ease financial conditions.

The benchmark Sensex gained 447 points, or 0.52 per cent, to close at 85,712.37, marking its second straight day of gains.

The Nifty also advanced 153 points, or 0.59 per cent, to settle at 26,186.45. “On the upside, immediate resistance is placed at 26,300, followed by 26,400 and 26,500,” experts said.

“On the downside, support is seen at 26,100, and then at 26,000, with a break below 25,850 likely to attract additional selling pressure,” they added.

IANS