Market Outlook Positive Amid Inflation Data and Upcoming IPOs

Dalal Street witnessed a significant increase in the week ending December 6, with the BSE Sensex closing at 81,709, up 2.39%, and the Nifty 50 rising by 2.27% to 24,678. This surge was driven by the Reserve Bank of India's dovish monetary policy, which included a 50 basis point reduction in the cash reserve ratio, as well as positive foreign institutional investor flows, stable services PMI, and declining oil prices.

Market sentiment is expected to remain positive in the coming week, supported by anticipated improvements in government capital expenditure for FY25 and a potential moderation in Q4FY25 inflation. Key factors to watch include inflation data from the US and India, the European Central Bank's interest rate decision, and several major IPOs. Experts predict that the market will continue to rise, benefiting from increased liquidity following the RBI's CRR cut and favorable government policies.

The broader market outperformed benchmarks, with the Nifty Midcap 100 Index climbing 4.1% and the Smallcap 100 Index gaining 4.5%. Most sectors participated in the rally, except for FMCG.

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