India stock outlook: Market participants will watch out for Q3 earnings, FPI activities and global cues

Mumbai (Maharashtra) [India], January 5 (ANI): The domestic stock markets, in the upcoming week, will focus their attention on the earnings of companies, foreign portfolio investments (FPI) data, a host of economic data, Fiscal Year GDP Growth, Index of Industrial Production (IIP), and other global cues, according to the market experts.

The market participants will also have their eyes on the outcome of the scheduled visit of U.S. National Security Adviser Jake Sullivan between January 5-6, to co-chair a review of the Initiative on Critical and Emerging Technology (iCET).

This visit is expected to drive innovation, attract investments, and positively impact India’s technology and infrastructure sectors, reinforcing the growing strategic partnership between the two countries, the expert market watchers say.

“Looking ahead to the second week of the year, several key events are likely to influence market sentiment. The earnings season begins with IT major TCS, a key trigger as any signs of improvement in Q3 numbers could reverse the ongoing trend of FII outflows. Additionally, a host of economic data, including HSBC Composite PMI, HSBC Services PMI, Fiscal Year GDP Growth, and IIP, will be closely monitored for further cues,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Manish Goel, Founder and Director, Equentis Wealth Advisory Services Pvt Limited, observing the investors’ sentiments stated, “The release of the First Advance Estimates of Annual GDP for FY 2024-25 on January 7, 2025, is a key event to watch, as it will provide important insights into the economic outlook and could have a notable impact on market sentiment and expectations ahead of the Union Budget.”

The stock markets kicked off 2025 on a positive note, with benchmark indices gaining nearly 1 per cent despite volatility.

Initially, the sentiment was subdued, showing slight improvement in subsequent sessions. However, the real momentum emerged on Thursday, enabling the indices to close higher despite a lacklustre final session.

As a result, the Nifty and Sensex ended the week at 24,004.7 and 79,223.11, respectively.

Sectoral performance was mixed, keeping market participants engaged. Auto, FMCG, and energy sectors emerged as the top gainers, while realty and banking sectors ended in the red.

In the previous week, the Foreign Portfolio Investors (FPIs) started 2025 on a cautious note in Indian equities, with a net selling of Rs 4,285 crore in just the first three trading sessions of the year, according to data from the National Securities Depository Limited (NSDL).

The data further revealed that the highest selling in the equity segment occurred on the very first day of 2025, with a significant net outflow of Rs 5,351 crore. This marked the biggest single-day sell-off by foreign investors in the equity markets this year.

However, the data for the last month, December, highlighted that net investment by FPIs in Indian equities stood positive, with a net investment of Rs 15,446 crore.

The year 2024 marked a positive ending, but the net buying value in Indian equities by FPIs drastically reduced, declining to Rs 427 crore.