Dalal Street is headed into the final stretch of the year as investors brace for a week driven by economic data releases, global developments and the flow of foreign funds. Analysts expect trading to remain largely range-bound, with sentiment hinging on a mix of domestic indicators and overseas cues, while automobile sales numbers are also set to draw attention. With the year nearing its end and only a limited number of trading sessions remaining, equities are likely to trade within a narrow band, though experts see underlying support for the market. “This week marks the transition into calendar year 2026 and is likely to witness heightened volatility due to the December F&O expiry. Key domestic data points to track include industrial production data for November and the final HSBC manufacturing PMI (Purchasing Managers’ Index) reading,” said Ajit Mishra, SVP, research, Religare Broking Ltd. He noted that global factors would play an equally important role, as investors track signals from the United States, particularly the release of the Federal Open Market Committee (FOMC) minutes and information related to the Federal Reserve’s balance sheet. “These developments could influence near-term expectations around growth, liquidity, and global risk sentiment,” Mishra said. Last week, Indian equities ended on a cautious note in a holiday-shortened trading period, marked by thin volumes, marginal profit-taking and continued foreign fund outflows. The BSE benchmark index advanced 112.09 points, or 0.13%, during the week, while the Nifty rose by 75.9 points, or 0.29%. Ponmudi R, CEO – Enrich Money, said the market’s near-term direction will largely be guided by a heavy flow of economic data from both domestic and global fronts. “With only a handful of trading sessions left in 2025, Indian equity markets are expected to remain largely range-bound, albeit with a constructive bias. Investor sentiment this week is likely to be shaped by a busy economic data calendar, both domestically and overseas. On the home front, India’s November industrial production (IIP) data will offer fresh insights into trends across mining, manufacturing, and electricity output,” he said. According to Ponmudi, investors will also keep a close watch on November automobile sales figures to gauge the strength of demand. “Alongside IIP data, these releases will offer key insights into domestic consumption trends, particularly whether the post-GST rationalisation surge in auto demand is being sustained as India moves into 2026,” he added. On the international front, attention is expected to shift to signals from major economies. Apart from the US Federal Reserve meeting minutes, analysts said data such as US initial jobless claims and manufacturing PMI readings from the US and China could influence global market sentiment. Siddhartha Khemka, head of research, wealth management, at Motilal Oswal Financial Services Ltd, said that India’s monthly auto sales, along with these overseas indicators, will be among the key data points investors are likely to track through the week.
