Weak Global Cues Impacting Indian Shares Ahead of Key Data

Indian stocks are expected to start on a negative note due to lower Nifty futures and weak global signals. Market sentiment may be supported by a stronger industrial production figure, yet caution prevails ahead of crucial inflation data.

Date: 13-01-2025

AI Rating: 5

Market Conditions and Economic Indicators
Recent trends suggest a cautious approach among investors as uncertainty looms around Federal Reserve interest rate cuts. The lower GIFT Nifty futures alongside weak global market cues heighten concerns for Indian shares.

The report highlights that India's industrial production rose by 5.2% year-over-year in November, exceeding expectations of 4%, indicating solid economic performance. Manufacturing output growth of 5.8% also shows positive momentum.

However, investors are awaiting consumer price inflation data, with November figures showing a decrease to 5.48% from 6.21%. This data keeps inflation close to the central bank’s desired range but still introduces caution in the market.

Complications arise with higher crude oil prices, which could dampen overall economic sentiment, especially given the nation's dependence on oil imports.

Slight losses in Indian shares were reported, extending a losing streak amidst weakening rupee concerns and Foreign Institutional Investor (FII) outflows—signifying a potentially unfavorable environment for stock prices.

The report also notes positive performances by specific stocks, such as TCS, which sparked buying interest in IT shares to mitigate broader market losses, showing that certain sectors are reacting positively despite negative global influences.

In summary, while industrial production data points toward economic resilience, the overall market remains skeptical, influenced by external cues and upcoming inflation data.

Stocks: HCL DEN ANGEL DELTACORP TCS