Indian stocks are anticipated to start the week on a firm footing on Monday, as investors navigate mixed signals from around the globe and look forward to the release of Industrial Production (IIP) and Consumer Price Index (CPI) data for direction. Throughout the week, market sentiment may be swayed by a combination of global cues, fluctuations in oil prices, Foreign Institutional Investor (FII) activities, and any emerging geopolitical events.
The ongoing tensions between Israel and Iran remain a "source of concern," according to External Affairs Minister S. Jaishankar, who stated on Sunday that India's diplomatic efforts are aimed at addressing these issues.
This morning, Asian markets largely retreated as traders dealt with persistent political turmoil in South Korea and awaited the results of a significant meeting of Chinese authorities. In China, consumer price growth decelerated in November, coupled with continued declines in factory-gate prices, indicating ongoing weak domestic demand.
The U.S. dollar experienced a slight increase following data suggesting that the U.S. job market remains sufficiently robust to sustain economic momentum, yet not so strong as to immediately trigger inflation concerns. An impending U.S. CPI report this week could potentially impact expectations for further monetary easing.
Oil prices held steady despite the overthrow of the Syrian government and Saudi Arabia's decision to reduce prices for Asian buyers more than anticipated. Meanwhile, gold prices inched higher as the People's Bank of China expanded its gold reserves in November, marking the end of a six-month hiatus in their purchasing.
Investors are also seeking guidance from a series of central bank meetings scheduled for this week. On Friday, U.S. stocks concluded a mixed session, buoyed by stronger-than-expected employment figures and robust consumer sentiment data.
Recent statistics highlighted a surge in non-farm payroll employment, increasing by 227,000 jobs in November after an upward revision to 36,000 jobs in October. Although the unemployment rate edged up from 4.1 percent to 4.2 percent, it bolstered investor confidence that the Federal Reserve will cut interest rates by an additional 25 basis points later this month.
The technology-heavy Nasdaq Composite rose by 0.8 percent, while the S&P 500 advanced by 0.3 percent, reaching new record highs. Conversely, the Dow Jones Industrial Average declined by 0.3 percent.
In Europe, stock markets closed mostly higher on Friday, fueled by optimism over swift passage of a new budget by the French government. The pan-European STOXX 600 index added 0.2 percent, Germany's DAX inched up 0.1 percent, and France's CAC 40 surged 1.3 percent. However, the U.K.'s FTSE 100 fell by 0.5 percent.
