Mixed Bag for Indian Stock Markets This Week; All Eyes on Trump’s Inauguration
Indian stock markets experienced a mixed performance this week, as investors adopted a cautious approach ahead of the inauguration of Donald Trump as the 47th US President.
Mumbai: Indian stock markets experienced a mixed performance this week, as investors adopted a cautious approach ahead of the inauguration of Donald Trump as the 47th US President.
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With uncertainty surrounding Trump’s economic policies, particularly his stance on tariffs, domestic benchmark indices ended the week with a weak finish.
Market Trends and Performance
After three consecutive days of gains, the Indian market closed lower on Friday. Large-cap IT and banking stocks underperformed, driven by cautious outlooks on discretionary spending for the IT sector and subdued deposit and credit growth, coupled with tighter liquidity conditions for banks. However, public sector banks (PSUs) performed well throughout the week.
The Sensex closed at 76,619.33, while the Nifty ended at 23,203.2. The Nifty continued to face bearish pressure for another session. The Nifty Bank index finished at 49,540.6, down by 738.10 points or 1.50%. Meanwhile, the Nifty Midcap 100 index closed at 54,607.65, adding 123.85 points (0.23%), and the Nifty Smallcap 100 index rose to 17,672.05, up by 28.75 points (0.16%).
Index Performance: A Closer Look
Since the recent peak in September 2024, the Nifty 50 has fallen by 11.5%, while the Midcap index has dropped by 12% and the Smallcap index has slid by 11%. The overall market sentiment remains cautious due to rising uncertainty about future US economic policies and the strengthening of the dollar.
Q3 Earnings and Market Outlook
The ongoing Q3 earnings season will play a critical role in restoring investor confidence and market stability. Market watchers suggest that investors are adopting a more risk-averse stance, considering factors such as persistent Foreign Institutional Investor (FII) outflows and the potential impact of Trump’s upcoming policies.
Also Read: Indian Stock Market Ends Lower After 3-Day Gains, Nifty Below 23,250
Impact of Global Factors on Market Sentiment
Looking ahead, the focus will be on the incoming US President’s comments and policies, especially regarding tariffs. Experts also caution that higher inflation in Japan or tighter monetary policy from the Bank of Japan could weigh on global market sentiment.
Investor Strategy: Focus on Resilience and Growth Potential
While the market correction continues, experts advise investors to act with clarity rather than panic. Krishna Appala from Capitalmind Research emphasized that this could be an opportunity to identify resilient stocks with strong growth potential, even amidst short-term volatility.
