What to Expect from Stock Markets This Holiday-Shortened Week?

New Delhi: Analysts predict that stock markets are set to experience a range-bound trading pattern during this week, which is shortened due to the holiday season. Factors such as foreign investor activity, currency fluctuations, and global economic data releases are anticipated to influence market sentiments.

Many international markets are expected to see reduced trading volumes as the Christmas and New Year holidays approach, according to experts. The domestic stock market will observe a closure on Thursday in observance of Christmas. As the festive season begins, trading volumes are likely to be lower due to the holiday break. Investors will be keeping an eye on domestic infrastructure output data, along with updates regarding bank loan and deposit growth, as well as foreign exchange reserves. Additionally, currency movements and crude oil prices will play a significant role.

Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted that the performance of major global markets, especially the US, will be closely watched for directional guidance. Ponmudi R, CEO of Enrich Money, emphasized that while strong domestic liquidity provides a buffer against significant downturns, the resurgence of foreign fund inflows could serve as a catalyst for the market's next upward movement, enhancing overall risk appetite.