US-Venezuela Tensions, FII Flows and Bharat Coking Coal IPO: 10 Key Factors to Watch on Dalal Street
Indian equity markets ended the previous week on a strong note, with benchmark indices posting gains of over 1%. Buying interest in metal and PSU banking stocks helped the Nifty scale a fresh lifetime high, reinforcing bullish sentiment as markets enter the new trading week.
The Nifty closed at 26,328.55, up 182 points, after touching an intraday record of 26,340. Technical indicators suggest that the broader trend remains positive, with experts advising investors to adopt a buy-on-dips strategy as long as key support levels hold.
1. Geopolitical Developments
Global markets are likely to remain cautious following escalating tensions between the United States and Venezuela. Recent military action has increased uncertainty around global risk sentiment, with investors closely monitoring potential retaliation and broader geopolitical implications.
2. Crude Oil Movement
Venezuela’s large oil reserves place crude prices in focus. While initial reports suggest that oil production remains unaffected, any prolonged escalation could influence global supply dynamics. However, existing sanctions on Venezuelan oil exports may limit immediate disruption.
3. Cues from US Markets
Wall Street ended the previous session on a mixed note. Gains in the Dow Jones and S&P 500 provided some support, while marginal weakness in the Nasdaq reflected selective profit-taking in technology stocks. Indian markets are expected to take cues from overnight global trends.
4. FII and DII Activity
Foreign institutional investors were marginal net buyers on Friday, purchasing equities worth ₹290 crore. Despite this, overall flows for early January remain negative, following significant selling in December. Market participants anticipate a gradual improvement in foreign inflows, supported by strong domestic fundamentals.
5. Q3 Earnings Updates
The December-quarter earnings season is set to gather pace from mid-January. Early business updates from select companies have already influenced stock-specific action. Retail, FMCG, banking and financial services stocks are expected to remain in focus as results unfold.
6. IPO Watch: Bharat Coking Coal
The primary market will see fresh activity with the upcoming Bharat Coking Coal Limited IPO, scheduled to open on January 9. The ₹1,300 crore issue is entirely an offer for sale by the promoter. Several SME IPOs and listings will also add to market action.
7. Technical Triggers
Technical analysts highlight that the Nifty has decisively moved above its consolidation range. Immediate support is placed near 26,000, while a sustained move above 26,300 could open the path towards the 26,600–26,700 zone in the short term.
8. Rupee vs Dollar
The Indian rupee weakened past the 90 level against the US dollar, pressured by a strong greenback and foreign fund outflows. Softer crude prices and potential central bank intervention may help limit further downside.
9. Gold and Silver Trends
Precious metals continue to attract attention after a strong rally last year. Rising geopolitical risks could further boost safe-haven demand for gold and silver, which may influence overall market risk appetite.
10. Anchor Lock-in Expiry
Several recently listed stocks will see the expiry of anchor investor lock-in periods this week. The resulting increase in tradable shares could lead to stock-specific volatility in the secondary market.
Overall, while the broader trend remains constructive, investors are advised to stay selective, monitor global developments closely, and manage risk prudently amid heightened volatility.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
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