Indian equity markets are expected to remain positive yet cautious in the truncated trading week beginning December 22, with investors closely tracking a mix of global macro cues and domestic market indicators.
With limited trading sessions due to holidays, market participants are likely to stay selective as key global data releases and policy signals shape near-term sentiment.
Key Factors to Watch on Dalal Street This Week
- US GDP and PCE Inflation Data
The spotlight will be on the US quarterly GDP numbers and Personal Consumption Expenditure (PCE) inflation, the Federal Reserve’s preferred inflation gauge. Any surprise could influence expectations around future US rate cuts and global risk appetite. - FII Fund Flows
Foreign institutional investor (FII) activity remains a crucial trigger for Indian equities. Sustained inflows could support benchmark indices, while renewed selling may cap upside. - Rupee Movement
The USD/INR trajectory will be closely monitored after recent volatility. Stability in the rupee could improve investor confidence, especially in rate-sensitive and import-heavy sectors. - China’s NPC Standing Committee Meeting
Outcomes from China’s NPC Standing Committee will be watched for any policy signals on stimulus, growth support, or regulatory changes that could impact global markets and commodities. - India VIX and Volatility Trends
The India VIX, currently at relatively low levels, suggests calm conditions but also raises the risk of sudden market swings if negative surprises emerge.
Market Tone for the Week
Overall, analysts expect range-bound movement with a positive bias, driven more by global cues than domestic triggers. Stock-specific action is likely to dominate as investors adjust positions ahead of the year-end.
Keywords: Dalal Street this week, Indian stock market outlook, US GDP data impact, FII flows India, rupee movement, China NPC meeting, India VIX, market factors to watch
