Market Update | Weekly Recap, Top Stocks & Outlook for December 2024
Get the latest weekly market update for Nifty, sector performance, and stock movements. Learn about key trends and actionable strategies for the week ahead.
Markets continued their upward trajectory for the second consecutive week, with the Nifty gaining over 2.5% in two weeks. Here's our take on this week gone by, some stories you might have missed out on, and our thoughts on what to do going ahead, in your weekly stock market report.
Weekly Recap
Buckle up!
- The Nifty had another volatile week, with sharp drops and recoveries, ultimately closing 0.94% higher than last Friday. This uptick was primarily driven by broad-based buying in large-cap stocks, particularly in the pharma and auto sectors.
- The market initially rallied following favourable state election results, but increasing geopolitical tensions in Ukraine and a lack of domestic catalysts caused a sharp decline on Thursday. While the index rebounded on Friday, the overall outlook remains uncertain.
What’s going on?
- US stocks joined the global rally on Friday after the Thanksgiving holiday, positioning Wall Street for its biggest monthly gain in a year, fuelled by optimism around post-election growth.
- Asian markets, however, were directionless as investors await clarity on the incoming Trump administration's tariff and fiscal policies, which could impact global trade.
The winners
- Adani Enterprises jumped 10.6%, topping the winners list after clarifications that the US Justice Department's bribery allegations didn’t involve key group executives. Read more: Adani Group Legal Update
- Bharat Electronics also gained 9.7%, boosted by JP Morgan’s positive outlook on the defence sector and its attractive valuations.
The losers
- Bajaj Auto was the top loser, continuing its downward trend since September, driven by disappointing sales and increased competition.
- HDFC Life Insurance also took a 4.4% hit, falling amid rumours that the insurance regulator might impose caps on a parent bank’s share of insurers' bancassurance business.
Meanwhile…
- US consumer confidence reached a 16-month high in November, driven by optimism about the labour market and future growth.
- At home, Q2 GDP growth slowed to a 18-month low of 5.4%, primarily due to weaker consumer spending. The data was released after market hours on Friday.
Market Brief
Market Outlook
Our take
- Although the December series kicked off on a positive note, concerns over sluggish economic growth may weigh on market sentiment. Therefore, we anticipate a period of consolidation this week, with the Nifty expected to trade within a range of 23,600 to 24,500.
- Investors should also remain vigilant to any significant geopolitical developments that could affect market sentiment. A stock-specific approach is recommended, particularly in sectors like Pharma, Chemicals, and FMCG, which are currently showing stronger momentum.
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