Key Trends in Indian Stock Markets for January
January has historically proven to be a difficult month for Indian markets as the benchmark index Nifty 50 has posted losses in 13 of the past 20 years. The performance of Indian stock markets in January 2025, the beginning of the new calendar year, will be closely monitored by the investors.
Key Global Events to Watch
- US Presidential Transition
Donald Trump is scheduled to swear-in as the President of the United States on January 20, 2025. It is likely that markets worldwide will react to it.
- Geopolitical Tensions
The continuing geopolitical disturbances such as the Russia-Ukraine war, the Middle East crisis, and trading crisis in the Red Sea are disrupting exchange rates.
- Resurgent Dollar
A resurgent dollar is weighing heavily on emerging-market currencies, including the rupee which depreciated by 3% in 2024.
Key Domestic Events to Watch
- Union Budget 2025-26
The Union Budget is scheduled for February 1. It will be crucial in shaping market expectations.
- Auto Sales Data for January
Auto sales remain a critical indicator of economic health and it will be closely scrutinised when the sales data of this sector is released, providing insights into consumer sentiment and demand recovery.
FII Activity
The Foreign Institutional Investors (FIIs) remained net buyers of equities in 2024, with ₹3,459 crore invested until December 26. However, FIIs also offloaded over ₹1.15 lakh crore worth of shares in October and November. The approach of FIIs towards Indian markets in January is likely to determine the market mood in the new calendar year.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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