Share Market This Week: This week was volatile for the Indian stock market, as investors turned to multi-asset strategies amid geopolitical uncertainties. Donald Trump is also going to return as the 47th US President. According to market experts, the strong US dollar and high valuations led to sell-on sentiment in the market, causing domestic benchmark indices to end the week with disappointment. After a strong decline, benchmark indices took some breather on Friday. However, the Nifty index closed on a negative note at 24,005.

This was the last day of the week

The volatility index, India VIX, declined 1.43 per cent to 13.54, indicating low volatility in the market. "A 'buy-on dips' strategy is recommended for Nifty as long as the index sustains above 23,900," said Rishikesh Yedve of Asit C Mehta Investment Intermediates Ltd. On Friday, the Sensex closed 720.60 points, or 0.90 per cent, lower at 79,223.11, and the Nifty closed 183.90 points, or 0.76 per cent lower, at 24,004.75.

Strong performance of auto sector

Nifty Bank closed at 50,988.8, down 616.75 points or 1.20 per cent. The Nifty Midcap 100 index closed at 57,931.05, down 177.15 points or 0.30 per cent, while the Nifty Smallcap 100 index closed at 19,033.70, down 46.65 points or 0.24 per cent. The auto sector outperformed other indices due to robust sales in December. Mid and small caps saw a slow recovery, while large caps declined.

Experts' opinion

Amid continued withdrawals by foreign institutional investors (FIIs), domestic institutional investors (DIIs) maintained their optimistic stance. Investors remain cautious in the new year for the upcoming quarter. According to experts, uncertainty over Trump's economic policies and high-valuation may affect the stock market in the short term. This effect can be seen especially in emerging markets. Investors are likely to align their portfolios based on expectations before the budget. Vinod Nair, Head of Research, Geojit Financial Services, said that key data points such as FOMC minutes, US non-farm payrolls and unemployment rate will influence market sentiment.