Stock market watch | IPOs, fiscal data that matter in Dec 30-Jan 5 week

The upcoming week — December 30 to January 5 — is set to witness a slew of IPOs on the stock markets, the release of critical economic data and a host of business events.

Also, all eyes will be on the rupee movement and trends among foreign institutional investors (FIIs).

IPO listing

In the IPO space, Indo Farm Equipment will take centre stage with the week's largest offering — a Rs 260 crore IPO split between a fresh issue of Rs 185 crore and an offer-for-sale component of Rs 75 crore. The company has set its price band at Rs 204-215 per share for the offering from December 31 to January 2.

The SME segment is particularly active, with three companies making their market debut. Technichem Organics is launching its Rs 25.25 crore IPO on December 31 with a price band of Rs 52-55.

Following this, Leo Dry Fruits and Spices Trading will mark the first IPO of 2025 with its Rs 25.1 crore offering priced at Rs 51-52 per share. Fabtech Technologies Cleanrooms rounds out the SME offerings with its 32.64 lakh shares IPO running from January 3 to January 7, though their price band is yet to be announced.

Also read: 2024: The year India turned IPOs into a national obsession

Economic data

On the economic data front, market participants will receive crucial insights into India's economic health.

December 31 brings three important releases -- the fiscal deficit numbers, infrastructure output for November, and external debt figures for Q3CY24. The manufacturing sector’s performance will be focused on January 2 with the final HSBC Manufacturing PMI data. The preliminary reading 57.4 for December, up from November’s 56.5, has already indicated robust factory activity.

The banking sector and foreign exchange situation will come under scrutiny on January 3 with the release of bank loan and deposit growth data, along with forex reserve figures.

Recent trends show concerning movements in forex reserves, which have declined to $644.39 billion, marking a significant drop from the September peak of $704.89 billion.

Rupee movement

In the currency markets, the Indian rupee faces continued pressure, having reached an all-time intraday low of Rs 85.81. This weakness stems from persistent foreign investor selling, declining forex reserves, and widening trade deficits.

The December decline of 83 paise marks the steepest monthly fall since May 2023, while the yearly depreciation of Rs 2.2 represents the most substantial decline since 2022.

Market experts anticipate continued volatility in the rupee, with trading expected in the range of Rs 85.22- Rs 86.40. Movements influence this outlook in the US dollar index, which reached 108.006, its highest level since November 2022, and the US 10-year Treasury yield, which has climbed to 4.629 per cent.

Also read: Rupee sinks 53 paise to hit new all-time low of 85.80 in mid session

FIIs

The institutional investment landscape shows divergent trends between foreign and domestic investors. FIIs have maintained their selling stance, with December outflows reaching Rs 10,444 crore, marking their third consecutive month of net selling.

However, domestic institutional investors have provided crucial market support, investing Rs 27,474 crore in December alone. Their consistent buying during market dips has been instrumental in helping the market achieve a 9 per cent gain in 2024.

Auto sales

The auto sector will also be in focus as December sales figures are released in early January. While analysts predict single-digit growth in two-wheeler and passenger vehicle segments and strong tractor sales, commercial vehicle sales are expected to show more subdued performance year-over-year.

Business events

India International Jewellery Show 2025

• Dates: January 4-7, 2025

• Venue: Jio World Convention Centre, Mumbai

• Overview: A major gems and jewellery industry trade fair featuring over 1,500 exhibitors showcasing the latest trends and products.

Also read: India's GDP growth to remain steady at 6.5% in FY25, FY26: EY report

International Consumer Show 2025

• Dates: January 5-7, 2025

• Venue: SIR Elly Kadoorie Ground, Mazgaon, Mumbai

• Overview: This event aims to help Indian businesses share knowledge and form new connections while providing a platform for exporters.

Indore Engineering & Manufacturing Expo 2025

• Dates: January 5-8, 2025

• Venue: Labhganga Exhibition Center, Indore, Madhya Pradesh

• Overview: A trade show on engineering and manufacturing industries, showcasing innovations and networking opportunities.