Weekly Wrap (6th – 10th January 2025)

Market Overview:

Markets concluded the week on a bearish note, with both the Nifty 50 and Sensex shedding over 2% amid global and domestic concerns. Midcap and Smallcap indices faced the most pressure, reflecting a sharp selloff in broader markets.

• Nifty 50: 23,431 (-2.39%)

• Sensex: 77,378 (-2.33%)

Major Indices:

The week was particularly challenging for midcap and smallcap stocks:

• BSE Midcap: -5.74%

• BSE Smallcap: -6.05%

FII & DII Activity (as of January 9th)

• Foreign Institutional Investors (FII): Net Sellers ₹14,599 crore

• Domestic Institutional Investors (DII): Net Buyers ₹17,721 crore

While FIIs continued their selling spree, DIIs provided much-needed support, softening the market’s fall to some extent.

Sectoral Performance

IT was the only bright spot in an otherwise challenging week, while sectors like Realty, PSU Banks, Media, and Energy saw significant corrections:

• Nifty IT: +2.02%

• Nifty Energy: -5.99%

• Nifty Realty: -7.83%

• Nifty PSU Banks: -8.07%

• Nifty Media: -6.34%

Stock Performance: Top Gainers and Losers

Top Gainers:

• TCS: +4.04%

• Tata Consumer Products: +3.55%

• HCL Technologies: +2.49%

Top Losers:

• Shriram Finance: -12.74%

• Trent: -9.90%

• NTPC: -9.30%

Key Highlights

1. Global Factors:

• Strong U.S. jobs data for December.

• U.S. bond yields surged, with the Dollar Index reaching a 14-month high at 109.

• Concerns over a potential delay in Fed rate cuts.

2. Domestic Factors:

• Industrial production (IIP) rose to a six-month high.

• Anticipation builds around India’s upcoming CPI data and quarterly corporate earnings.

Week Ahead: Key Insights and Expectations

1. Sectors to Watch:

Defensive sectors such as IT, FMCG, Oil & Gas, and Pharma are expected to attract investor attention amid volatility.

2. Stock-Specific Activity:

Increased focus on individual stock movements, particularly in large caps, as broader indices consolidate.

3. FII Positioning:

FIIs’ cumulative net short positions in Nifty Futures and Bank Nifty Futures are at their highest levels since June 2024, signaling caution.

4. Global Economic Calendar:

• U.S. CPI Data

• India’s CPI Data

• Eurozone Industrial Production Figures

Market Technical View

Nifty and Bank Nifty are poised for significant moves:

• Nifty: Keep an eye on key support and resistance levels, but be cautious of heightened volatility.

• Bank Nifty: High volatility expected with the potential for a 1,000-point move in either direction based on triggers.

For a detailed analysis and in-depth insights, watch our exclusive YouTube video.

Stay tuned for more updates and have a great week ahead!