Global stock market expectations for the next week include domestic macro-economic data, policy and interest rate decisions by the global central banks, which includes the US Fed, and data about foreign capital inflow and global cues.
Indian equity benchmarks saw longest weekly winning gains in 3 years, as these indexes rallied to significantly record levels because of strong macroeconomic data, decline in oil prices and rate pauses by the RBI. While frontline indexes continue to increase for the 6th straight week, global stock market expectations have also played a critical role as traders and experts believe that the US Fed might start rate cuts in early 2024. NSE Nifty 50 and S&P BSE Sensex indexes went up by ~3.5% to see their best week since the month of July 2022. While Nifty 50 tried to test a new milestone at the lifetime high, Sensex moved closer to ~70,000 levels.
Despite small- and mid-caps underperforming the blue-chips for the week, they gained ~1.16% and ~2.35%, respectively, to log fresh highs. Bank Nifty rallied by over 5%, exhibiting strong investor sentiment in overall banking sector. Nifty 50 ended at ~20,969.40, exhibiting a rise of 68 points on December 8, or 0.33%. Sensex ended the day at ~69,825.60, up by 304 points, or 0.44%.
Coming to the US markets, strong momentum was seen in the technology stocks. Chipmaker Nvidia and Meta Platforms saw an increase of ~2% in Friday’s session. However, shares of Google-parent Alphabet declined by ~1.4%, as the scrip gave up gains post an AI-led rally in previous session. Overall momentum in the US markets is being supported by strong quarterly reports and favourable comments from the US Fed because of which experts believed that the apex bank might be finished raising rates. These expectations have stemmed steady gains in the market since late October.
Federal Reserve’s last monetary policy meeting of this year and the US inflation report, which is expected in the coming few days, should test the stock market in the next week. Friday’s stronger-than-expected jobs report and consumer sentiment data, together with higher yields, supported the views that the US Fed might become more hawkish in the next week.
Coming to Chinese markets, Hang Seng Index is on track for the 4th year of declines, which will be the longest losing streak in its history. It declined to 1-year low in the week gone by. On Friday, Hang Sang Index fell by ~0.07% to 16,334.37.
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