Key Factors Influencing Indian Stock Market This Week: WPI Inflation, India-US Trade Deal and More

Indian stock indices, Sensex and Nifty 50, experienced gains for the second consecutive session on Friday, December 12, driven by positive global sentiment following the US Federal Reserve's rate cut. The Sensex increased by 450 points, a 0.53% rise, closing at 85,267.66. Similarly, the Nifty 50 climbed 148 points, or 0.57%, to settle at 26,046.95. The broader market performed even better, with the BSE Midcap and Smallcap indices increasing by 1.14% and 0.65%, respectively.

The total market capitalization of BSE-listed companies also saw a significant increase, rising to over ₹470 lakh crore from ₹466.6 lakh crore in the previous session. This single trading session added more than ₹3 lakh crore to investor wealth.

According to Ajit Mishra, SVP - Research, Religare Broking Ltd, “Markets remained volatile and ended the week in negative territory amid mixed domestic and global cues. Sentiment stayed subdued through most of the week and weakened further as selling pressure intensified, though a late rebound in the final sessions helped limit the downside. Persistent foreign fund outflows and a sharp depreciation in the rupee weighed heavily on investor confidence. As a result, the Nifty slipped 139 points to close at 26,046, while the Sensex declined 445 points to end at 85,268.”

Mishra advises investors to exercise caution in the market outlook, suggesting a selective approach and a balanced portfolio amidst ongoing currency volatility and mixed global cues. He added that exposure to large-cap companies is preferable, particularly in sectors like private banking.