By the end of 2022, the economy may be under even more stress as a result of the horrifying Covid pandemic news coming out of China. Analysts predict that the direction of the financial markets this week will be determined by global trends and the situation with the Covid pandemic in China. In addition, volatility may continue when Thursday’s futures agreements are completed. Analysts claim that despite increased cases of Covid-19 infection in China and several other nations, investor sentiment remained negative last week.

Reliance Industry Declined The Most Last Week

The combined market capitalization of the top 10 firms last week dropped by ₹ 1,68,552.42 crore. Reliance Industries had to endure the greatest collapse of all of these. The Sensex dropped 1,492.52 points, or 2.43%, last week. Reliance Industries’ value dropped from ₹ 42,994.44 Crore to ₹ 16,92,411.37 Crore. The market valuation of the State Bank of India declined by ₹ 26,193.74 Crore to ₹ 5,12,228.09 Crore

Slump In The Market

In addition, positive US GDP numbers allowed the Federal Reserve to maintain its accommodating posture. Because of this, there was a slump in the market as well. The Sensex fell by 1,492.52 points, or 2.43%, while the Nifty fell by 462.20 points, or 2.52%, during the previous week.

The expected expiration of December month contracts will keep the participants busy, according to India Infoline Limited’s Vice President Anuj Gupta. In addition to this, the instability will rise due to the rise in Covid infection instances. Next week, investors will also be watching the movement of the Rupee, Brent Crude Oil, and the attitude of foreign investors. The rising rate of Covid infection in China and the potential for a recession will have an impact on global equity markets.

₹ 11,557 Crore Net Investment By Foreign Portfolio Investors

Despite the resurgence of the Covid infection in several other nations, notably China, and the stock market decline, foreign investors have made a net investment of ₹ 11,557 Crores in Indian stocks so far in December. According to VK Vijay Kumar, Chief Investment Strategist at Geojit Financial Services, the macroeconomic statistics for the US and the progress of the Covid transformation will decide market movement in the future years. In November, net investments by foreign portfolio investors (FPIs) were ₹ 1,36,200 Crore. the data from the repository.

The Major Factors Will Affect The Market

1. Investors will be haunted by concerns about Covid’s expanding impact.
2. On Friday, further data, including the budget deficit, will be made public.
3. Data for the United States, the Eurozone, and China will be made public.
4. It’s possible that crude oil prices will keep climbing.
5. Foreign institutional investors’ perspectives
6. More rapid changes than the futures market’s monthly reduction.

Despite the challenging year, the world bank believes India is best positioned to handle the situation amid concerns about a worldwide recession. The world bank has estimated that India’s GDP would grow by 6.5% in the financial year 2022-23, but in the latest report, it has increased this estimate to 6.9%. the domestic demand in the Indian market will remain strong and on the basis of this, India will remain one of the fastest growing economies of the world.