Investors Brace For 2025, Key Economic Data Points And IPOs — The Week Ahead
Fiscal deficit data, eight-core industries print and manufacturing PMI will be the key numbers to track on the domestic front.
As the Indian stock market steps into the new year, a slew of domestic and international data will set the tone for the secondary market in the week ahead.
The primary market is set to stay active, though with a slightly quieter pace than the previous week, with two issues opening and six listings scheduled over the next five sessions.
Fiscal deficit data, eight-core industries print and manufacturing PMI will be the key numbers to track on the domestic front, while China's manufacturing and non-manufacturing PMI will be in focus on the international front.
Indian stock market will remain open on Jan. 1, while global markets will be shut on account of the New Year's Day. Analysts expect global markets to continue seeing heightened volatility in the first half of the calendar year 2025
Uncertainty surrounding Trump's economic policies and high valuations may impact the stock market in the short term, particularly in emerging markets, according to Vinod Nair, head of research at Geojit Financial Services Ltd.
Looking ahead, significant market attention is expected for the upcoming third quarter results, which will play a crucial role in shaping market trajectory, Nair said. "Investors are likely to align their portfolios based on pre-budget expectations. Additionally, key data points such as the PMI data for India, the US, and China, as well as US jobless claims, will influence investor sentiment."
Markets This Week
India's benchmark indices recouped its last week's losses to end the week positive. The NSE Nifty 50 and BSE Sensex ended 0.96% and 0.84% higher, respectively in the week ended on Dec 27.
Last week on NSE, eight sectors advanced and four declined out of 12. The NSE Nifty Media declined the most, while the NSE Nifty Auto rose the most. The NSE Nifty Auto, NSE Nifty Oil and Gas, NSE Nifty Banks snapped two weeks losing streak.
The Nifty 50 and Sensex ended Friday's session higher as Mahindra & Mahindra Ltd. and ICICI Bank Ltd. share prices lead. The Nifty 50 ended with gains for second day in a row.
Meanwhile, the rupee weakened by 53 paise to a record low of 85.79 against the US dollar on Friday, posting its steepest single-day decline since Feb. 2023.
Domestic Cues
On Tuesday, fiscal deficit data and eight-core industries' November performance will highlight government finances and infrastructure sector activity. This deficit data will be in focus as the government has reached 46.5% of the budgetary target at the end of the first seven months.
Thursday, Jan. 2 will see the release of HSBC India Manufacturing Purchasing Managers Index. India's manufacturing activity expanded at a slower pace in November even as selling prices rose to the greatest extent since October 2013.
Foreign exchange reserves data on Friday will reveal if the central bank continued to deploy dollars to protect the domestic current as the rupee continues to hit fresh lows.
Global Cues
This week, critical economic data from major economies will shape market sentiment heading into the new year.
On Monday, Chile's unemployment data and Hong Kong trade figures will be released, alongside US manufacturing activity and pending home sales.
Tuesday sees China reporting manufacturing and non-manufacturing PMI, while US housing market indices will provide insights into property trends.
Markets will pause on Wednesday for New Year's Day.
Eurozone manufacturing PMI, US jobless claims, construction spending, and manufacturing PMI will be released on Thursday, giving a clearer picture of global industrial and labour market conditions.
Primary Market Action
After a flurry of listing and maiden issues closing in the previous week, activities in the primary market will be toned down in the upcoming five days with two new issues opening and six listings.
In the initial public offering space, the maiden issue of Indo Farm Equipment Ltd. will open for subscription on Tuesday. The agricultural equipment manufacturer has downsized its maiden public offer's fresh issue from 1.05 crore shares to 86 lakh shares.
The offer-for-sale component consists of 35 lakh shares, which will be offloaded by promoter Ranbir Singh Khadwalia, according to the red herring prospectus. The three-day issue will close on Jan. 2.
On the same day, the issue of Technichem Organics Ltd. will open in the small and medium enterprises space. The IPO aims to raise Rs 25.2 crore at an issue price of Rs 52 to 55 per share.
The maiden offerings of Citichem India Ltd. and Anya Polytech & Fertilizers Ltd. in the SME space that began for bidding in the previous week will end in the upcoming sessions.
On the listings front, Unimech Aerospace and Manufacturing Ltd., Senores Pharmaceuticals Ltd., Ventive Hospitality Ltd. and Carraro India Ltd. will be the open board companies to list during the week.
The week will end with the listing of two companies i.e., Citichem India Ltd. and Anya Polytech & Fertilizers Ltd., which will debut in the SME space.
Corporate Action
Some of the key companies have some announcements lined up. The record date for KPI Green Energy Ltd.'s bonus issue with a ratio of 1:2 is on Jan. 3. Banco Products (India) Ltd., Surya Roshni Ltd. Ceenik Exports (India) Ltd. and Garware Technical Fibres will also see record dates for their bonus issues during the week.
The table below shows the full list of corporate actions for the upcoming week.
