Stock Market Upcoming Week: The last trading week was not good for the stock market. The decline that started from Monday continued till Friday. In the last one week, more than Rs 18 lakh crore of investors’ investments were lost. The biggest reason for this decline was the selling pressure of foreign investors amid weak domestic and global signals. This pressure badly affected the market. Sensex and Nifty 50 fell by about 5%, ending the gains of the last four weeks.
Heavy decline seen in Sensex and Nifty
During the week, BSE Sensex closed at 78,041.59, down 4,091 points or 4.98%, while Nifty 50 closed at 23,857.5, down 1,180 points or 4.77%. Bank Nifty declined by more than 5%. Continuous selling by foreign investors and the tough stance of the US Federal Reserve pushed the market down.
Market cap declined by Rs 18.43 lakh crore
There was a huge decline in the wealth of Indian investors during the week. The total market capitalization (market cap) of companies listed on BSE declined from Rs 18.43 lakh crore to Rs 4,40,99,217.32 crore (about $5.18 trillion).
Global signals and foreign investors
The US Federal Reserve’s revision of interest rate cut plans and increase in US bond yields put pressure on emerging markets. According to NSDL data, last week foreign institutional investors (FIIs) sold Rs 15,828 crore, while domestic institutional investors (DIIs) bought Rs 11,874 crore.
Sector wise, all major sectors registered a decline this week, except Pharma, which showed strength. Metal, energy and banking were most affected. The energy sector has entered the oversold zone, which may create a possibility of a short-term correction.
How will the coming week be for the market?
There is a possibility of increased volatility in the stock market next week. In fact, December derivatives expiry and global economic data will determine the direction of the market. Apart from this, globally, US dollar index, bond yield and crude oil prices will affect the market. Talking about IPOs and listings, three new IPOs and eight listings will be seen in the market this week. Unimac Aerospace’s IPO will open on December 23, while other listings will take place on December 27 on BSE and NSE.
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