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Published: Jan 9, 2023
Updated: Jan 9, 2023

Indian Markets See Strong Performance on Monday; Know what this week holds

Monday Bonanza

On Monday, the Indian stock market saw a strong performance, with the Sensex jumping 850 points to regain the 60,000 mark and closing at 60,750. The Nifty index also reclaimed the 18,000 mark, closing at 18,101 with a gain of 240 points. Almost all sectors ended the day in the green, with the IT, energy, autos, metals, and PSU banks sectors seeing particularly strong gains. The consumer durables sector was the only one to close in the red.

Reasons for the Rally

The rally in Indian markets was likely driven by a combination of positive global cues and Friday's Wall Street gains. In addition, most sectors participated in the rally, which contributed to the broad-based gains seen in the market.

This Week's Market Triggers – Important Data and Events of the Week

1. US December Inflation Report:
Investors will be closely watching this report, which is expected to show a decrease in inflation to 6.6% from 7.1%. Core consumer prices are also expected to rise 0.3% month-on-month.

2. Consumer Sentiment Survey:
This survey will provide insight into consumer confidence and spending patterns.

3. Retail Inflation Data from China and India:
Investors will be monitoring inflation trends in these major economies. Inflation has remained a prime concern since months with some signs of easing down in past 2 months.

4. Fed Chair Powell's Speech at the Riksbank International Symposium:
All eyes will be on what the Fed Chairman speaks at the Symposium. Powell’s comments will be closely scrutinized for any hints about future monetary policy decisions.

5. Monetary Policy Meeting in South Korea:
Investors will be looking for clues about the direction of monetary policy in this important Asian economy.

6. Q4 Results from Major Banks:
Bank of America, BlackRock, Citigroup, JPMorgan, and Wells Fargo will all be releasing their Q4 results on Friday.

What to Expect from Global Markets in the Remaining Days of the Week

As we move into the latter half of the week, investors will be closely watching key economic data releases and central bank events that are likely to impact global financial markets. The US December inflation report and consumer sentiment survey will provide important insights into inflation trends and consumer confidence, while retail inflation data from China and India will give a sense of the economic health of these major economies. Federal Reserve Chair Powell's speech at the Riksbank International Symposium and the monetary policy meeting in South Korea will also be closely watched for clues about the direction of monetary policy. Finally, the Q4 results from major banks, including Bank of America, BlackRock, Citigroup, JPMorgan, and Wells Fargo, will be closely scrutinized for any signs of strength or weakness in the financial sector. All of these developments will likely influence market behavior in the remaining days of the week, so investors should stay attuned to these events.