Monthly Market Wrap | December 2024

What’s Trending?

Fed lowers rates but sees fewer cuts next year due to stubbornly high inflation

The Federal Open Market Committee cut its overnight borrowing rate to a target range of 4.25%-4.5%, back to the level where it was in December 2022. The Fed indicated that it probably would only lower twice more in 2025, according to the closely watched “dot plot” matrix of individual members’ future rate expectations.

India's forex reserves decline to 5-month low of $654.8 billion

India’s foreign exchange reserves dropped by $3.235 billion to $654.857 billion, a five-month low, for the week ended December 6, data released by the Reserve Bank of India (RBI) revealed on Friday.

Rupee falls 5 paise to hit all-time low of 85.16 against US dollar in early trade

The rupee fell 5 paise to hit a new all-time low of 85.16 against the US dollar in early trade on Tuesday (December 24, 2024), amid strengthening American currency and sustained outflow of foreign capital.

KFin Technologies shares rise 6% in afternoon session

Shares of KFin Technologies Ltd zoomed 6% on 18th December trade after the firm joined BlackRock's Aladdin Provider network to enhance its operating model with asset managers, making it more standardised and efficient. The collaboration will let KFintech join a growing community of the world's largest asset servicers - enabling it to offer differentiated fund administration and accounting services to clients. ?

Factors that will drive the market in January

United States Fed Funds Interest Rate

The Federal Open Market Committee (FOMC) of the Federal Reserve will meet on?January 28–29, 2025. At the end of its Federal Open Market Committee session on Jan 30, 2024, Fed will provide its decision on Interest Rate. Fed Policy Is Likely to Be on Hold in January

Purchasing Managers’ Index (PMI)

The?manufacturing?and services?PMI?data for December will be released in the first week of January. The?manufacturing?PMI?measures?manufacturing?sector activity, while the services?PMI?evaluates activity in the services sector. A reading above 50 indicates expansion when compared to previous month.