The benchmark indexes in India are expected to open flat on the final session of 2024, in line with other Asian markets. This comes as elevated US Treasury yields continue to impact emerging markets. The Nifty futures were trading at 23,663.5, indicating a likely opening near Monday’s close.
On Monday, Indian stock markets fell, with bank stocks leading the decline due to concerns over US Treasury yields and expectations of fewer rate cuts in the US in 2025. Foreign outflows and negative sentiment weighed on the markets. So far this year, the Nifty and Sensex have posted gains of around 8.8% and 8.3% respectively, lower than the increase seen last year.
In Asian markets, the MSCI Asia ex-Japan index opened lower by 0.2%. Foreign institutional investors have been net sellers for the past ten sessions, while domestic institutional investors have been net buyers for the last nine sessions.
Some stocks to watch out for include the Adani group stocks following their announcement to exit a consumer goods joint venture, a contract signed by the Defence Ministry with Mazagon Dock Shipbuilders, the allocation of the Meenakshi Coal Mine in Odisha to Hindalco Industries, and Rail Vikas Nigam emerging as the lowest bidder for a Central Railway project worth ₹137 crore.
Overall, the market outlook remains subdued due to external factors impacting investor sentiment. As we head into the new year, it will be important to monitor developments in global markets and their impact on Indian equities.
