Indian stock markets are anticipated to start the week quietly, following a period of significant volatility in the previous trading session. On December 13, foreign institutional investors (FIIs) made net purchases of shares totaling Rs 2,335.32 crore, while domestic institutional investors (DIIs) sold shares amounting to Rs 732.20 crore, as per provisional data from the NSE.
This week, investor sentiment may be swayed by several factors, including the Federal Reserve's interest rate decision, activity surrounding 12 key listings, fluctuations in oil prices, and FII movements.
Asian markets exhibited a lack of clear direction this morning. Investors are digesting a range of Chinese economic data and anticipating signals from an upcoming Bank of Japan policy meeting. Over the weekend, Chinese regulators committed to intensifying efforts to stabilize both the housing and equity markets, along with implementing more effective fiscal strategies.
In other international developments, South Korean legislators have impeached President Yoon Suk Yeol over his failed martial law attempt. Meanwhile, the U.S. dollar remains near a three-week high, as market participants await a potentially hawkish interest rate cut by the Federal Reserve this week. Gold prices saw a slight increase, while oil futures retreated from their recent highs.
In the U.S., stock markets experienced fluctuations on Friday, ultimately closing with mixed results as rising Treasury yields counterbalanced Broadcom's optimistic AI-driven sales projections. The Dow Jones Industrial Average fell by 0.2%, marking its seventh consecutive decline and the longest streak of losses since 2020. The tech-focused Nasdaq Composite gained 0.1%, whereas the S&P 500 ended slightly lower.
In Europe, stock markets closed down on Friday due to worries about slowing economic growth and a potential trade conflict. The pan-European STOXX 600 index declined by 0.5%, breaking a three-week winning streak amid political and economic uncertainties in France. Germany's DAX and the U.K.'s FTSE 100 both dropped by 0.1%, while France's CAC 40 saw a 0.2% decrease.
