Indian Stock Market Closes Flat Amid Range-Bound Trading, Eyes on Q3 Results
Indian equity markets wrapped up the week with a flat performance, as gains in heavyweight sectors such as banking and pharma balanced declines in the IT sector.
Mumbai: Indian equity markets wrapped up the week with a flat performance, as gains in heavyweight sectors such as banking and pharma balanced declines in the IT sector.
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The benchmark indices, Sensex and Nifty, closed higher on Friday but remained largely range-bound over the week due to limited market catalysts.
Also Read: Share market ends in green, Sensex settles at 78,699
Weekly Market Highlights
- Sensex closed at 78,699.07, up by 226.59 points or 0.29%.
- Nifty settled at 23,813.40, gaining 63.20 points or 0.27%.
- The India VIX, a measure of market volatility, dropped by 5.68% to 13.24, signaling reduced market fluctuations.
Friday’s session saw gains across sectors including pharma, auto, IT, financial services, FMCG, media, and private banks, which contributed to the overall market recovery.
Expert Analysis: Key Levels to Watch
Market experts predict that the Nifty will likely consolidate between 23,500 and 23,900, with a breakout on either side indicating the next significant move.
- Upside Target: A sustainable move above 24,000–24,100 could trigger a rally.
- Downside Support: The 23,500 level remains a critical support zone.
According to Hrishikesh Yedve, Senior Analyst at Asit C Mehta Investment Intermediates Ltd, “The market is expected to remain range-bound in the short term, with limited upside potential unless significant triggers emerge.”
Factors Influencing the Market
- FII Outflows and Rupee Depreciation: Persistent foreign institutional investor (FII) outflows and a weakening rupee weighed on market sentiment.
- Geopolitical Uncertainty: Concerns over global economic policies, particularly those related to the US, added to investor caution.
- Valuation Concerns: High valuations in emerging markets continued to dampen sentiment.
Focus Shifts to Q3 Results and Pre-Budget Expectations
Looking ahead, market participants are keenly awaiting the Q3 earnings season, set to provide critical direction to market movements.
“Pre-quarterly business updates in early January 2025 will offer key insights into corporate performance and guide investor sentiment ahead of the result season,” said Siddhartha Khemka, Head of Research, Wealth Management, at Motilal Oswal Financial Services Ltd.
Additionally, macroeconomic data, including PMI figures for India, the US, and China, and US jobless claims, will play a pivotal role in shaping near-term market trends.
What Lies Ahead for Investors?
Experts suggest that investors align their portfolios with pre-budget expectations and upcoming earnings results. With no immediate triggers in sight, markets are likely to stay within a tight range, but a breakout could lead to significant shifts.
