Unlocking Confidence: Stock Market Outlook for the Week – NSE & BSE Activity Expected to Dip Amid Holiday Season as Analysts Gauge Investor Sentiment
As December unfolds, stock market investors are bracing for a week that blends optimism with caution. Key factors influencing sentiment this week include foreign investment trends, currency fluctuations, and critical global economic data releases. Due to the Christmas holiday on December 25, trading will be limited this week, marking the last full week of trading in 2025.
Ajit Mishra, Senior Vice President of Research at Religare Broking, noted that this festive period may lead to reduced trading volumes. “As holiday breaks approach, we may see subdued market activity. Investors will be keeping an eye on infrastructure output data, bank loan and deposit growth, and foreign exchange reserves,” he explained. Additionally, fluctuations in currency and crude oil prices will be essential for market dynamics.
Further insights from Ponmudi R, CEO of Enrich Money, emphasize that while strong domestic liquidity acts as a buffer against potential downturns, renewed foreign investor interest could be a significant catalyst for market growth. “The re-emergence of foreign funds is seen as a potential driver for market resilience, reinforcing a more favorable risk appetite among investors,” he stated.
On a global scale, Ponmudi highlighted the importance of tracking the performance of major markets, especially the U.S., for directional cues. The durability of any upward momentum will be closely tied to key macroeconomic indicators, specifically upcoming U.S. GDP figures and core personal consumption expenditure (PCE) data, which are anticipated to shed light on the U.S. economy’s health amidst changing inflation and growth dynamics.
Last week, the BSE benchmark index fell by 338.3 points, or 0.39%, while the Nifty dropped by 80.55 points, or 0.30%. However, the week concluded on a positive note, with the Sensex surging 447.55 points, or 0.53%, to settle at 84,929.36, and the Nifty rising by 150.85 points, or 0.58%, ending at 25,966.40. Mishra noted, “Despite selling pressure affecting most trading sessions, a late-week recovery driven by value buying and revived interest from foreign portfolio investors helped cushion market losses.”
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, offered further insights for the upcoming week, forecasting a range-bound trading environment with a positive bias. He pointed out, “The improvement in foreign institutional investor participation and a minor recovery in the Indian rupee against the U.S. dollar could provide some respite after recent weeks of continuous selling.” Khemka also highlighted that many global markets would likely experience subdued activity due to holiday breaks.
Key macroeconomic data releases to watch this week include GDP figures from the U.S. and U.K., along with consumer confidence metrics from the U.S. Overall, the market is anticipated to remain sideways while investor attention shifts toward the forthcoming corporate earnings season for Q3.
Investors are advised to stay informed on market dynamics and prepare for potential volatility as we approach year-end festivities.
(Disclaimer: The views and recommendations conveyed in this article are solely those of the featured experts and do not reflect the views of The Times of India.)
Original Source: https://timesofindia.indiatimes.com/business/india-business/stock-market-outlook-for-the-week-nse-bse-activity-possibly-muted-amid-holiday-season-analysts-weigh-in-on-investor-sentiment/articleshow/126104314.cms
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Publish Date: 2025-12-21 16:55:00
