What to Expect in the Stock Market This Week: Key Data and Trends

This week, stock market sentiment is expected to be influenced by various macroeconomic data releases and global trends. Analysts are particularly focused on auto sales figures and industrial production data for November. As the year comes to a close, Indian equity markets are predicted to remain stable with a constructive bias, despite potential volatility due to the December futures and options expiry. Key global economic indicators, including the US Federal Reserve's policy outlook, will also play a significant role in shaping market expectations. Stay tuned for insights on how these factors could impact your investments.

By Narendra Chaudhary Dec 29, 2025, 08:49 IST

Market Sentiment Influenced by Economic Indicators

New Delhi: Analysts predict that a variety of macroeconomic data releases, global market trends, and foreign investor trading activities will significantly influence stock market sentiment this week.

Experts are also keeping a close eye on auto sales figures.

As the year draws to a close, Indian equity markets are anticipated to remain mostly stable, although with a positive outlook, according to market analysts.

"This week marks the transition into the new calendar year and is expected to bring increased volatility due to the December futures and options expiry. Important domestic data to monitor includes the industrial production figures for November and the final HSBC manufacturing PMI reading," stated Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd.

On the global front, market participants will be attentive to US economic indicators, including the minutes from the Federal Open Market Committee (FOMC) and updates regarding the Federal Reserve's balance sheet.

"These developments could shape short-term expectations concerning growth, liquidity, and global risk sentiment," Mishra added.

Last week, the Indian equity markets concluded on a cautious note, experiencing slight profit-taking amid low trading volumes and ongoing foreign fund withdrawals.

During the holiday-shortened week, the BSE benchmark rose by 112.09 points, or 0.13%, while the Nifty increased by 75.9 points, or 0.29%.

"With only a few trading sessions remaining in 2025, Indian equity markets are likely to stay within a range, albeit with a constructive bias. This week's investor sentiment will be influenced by a busy economic data calendar, both domestically and internationally. The November industrial production data will provide fresh insights into trends in mining, manufacturing, and electricity output," remarked Ponmudi R, CEO of Enrich Money, a trading and wealth technology firm.

The November automobile sales data will also be closely monitored to confirm sectoral momentum.

In addition to the IIP data, these releases will provide crucial insights into domestic consumption trends, particularly whether the surge in auto demand post-GST rationalization is being maintained as India enters 2026, Ponmudi added.

Globally, attention will shift to the minutes from the latest US Federal Reserve meeting, which are expected to clarify the central bank's policy outlook, according to Ponmudi.

Siddhartha Khemka, Head of Research at Wealth Management for Motilal Oswal Financial Services Ltd, highlighted that key data releases to watch include US initial jobless claims, manufacturing PMI figures from the US and China, and India's monthly auto sales.