Markets today: Nov WPI; Dec PMI flash; MobiKwik, Vishal Mega IPO allotment

Stock Markets Today, Dec 16: The key benchmark indices, Nifty50 and Sensex, are likely to react to mixed global cues in Monday’s session. Last checked, GIFT Nifty futures were trading 29 points lower at 24,801 levels, signalling a weaker start for the bourses. 

 

Meanwhile, in the previous session, the Sensex settled 843.16 points or 1.04 per cent higher at 82,133.12. Similarly, the Nifty ended higher 219.60 points or 0.89 per cent at 24,768.30.

 

Also Read: The market is irrational right now: ICICI Prudential AMC's Anish Tawakley

 

Domestic cues

 

All eyes now turn to critical domestic indicators, with November's Wholesale Price Index (WPI) inflation and December's flash figures for Manufacturing and Services PMI set to guide the mood. 

 

Also Read: Dip, rebound: A Teflon resilience in markets that won't let declines stick

 

Last month’s WPI inflation saw a jump to a four-month high of 2.36 per cent, driven by soaring food prices, particularly vegetables, making today’s numbers even more crucial in gauging economic momentum.

 

Also Read: There is a new favourite: Why midcaps are outperforming smallcaps  

FII, DII 

  FIIs bought shares worth Rs 2,335.32 crore on December 13. Contrastingly, DIIs sold equities worth Rs 732.20 crore.   Also Read: Market gravity reverses and drawing foreign capital towards the US

 

IPO corner

  Dhanlaxmi Crop Science IPO (SME) will list on the bourses today. 

 

International Gemmological Institute (India) IPO (Mainline) and Hamps Bio Limited IPO (SME) will enter Day 2 of their subscription.

 

Inventurus Knowledge Solutions IPO (Mainline) and Yash Highvoltage IPO (SME) will enter the final day of their subscription.

 

One Mobikwik Systems IPO, Vishal Mega Mart IPO, Sai Life Sciences IPO, Purple United Sales IPO (SME) and Supreme Facility Management IPO (SME) will see their allotment. 

 

Also Read: Sebi enacts significant changes to disclosure and RPT regulations

 

Global cues 

Asia-Pacific markets saw mixed movements on Monday as investors turned their focus to key central bank decisions scheduled for the week including the Bank of Japan, and the People’s Bank of China (PBOC). 

 

In the US, the Federal Reserve is expected to deliver its decision on December 18, with market expectations leaning heavily toward a 25-basis-point rate cut, as indicated by the CME FedWatch tool.

 

The BOJ is widely expected to maintain its current interest rate policy when it announces its decision on Thursday. 

 

Meanwhile, the PBOC will reveal its updated loan prime rates on Friday. The one-year loan prime rate serves as a key reference for corporate and household loans in China, while the five-year rate acts as a benchmark for mortgage pricing.

 

In China, investors are also digesting fresh economic data, including November's figures for industrial production, retail sales, and home prices, which could provide further insights into the country’s economic trajectory.

 

The Kospi rose 0.20 per cent, while Nikkei was up 0.27 per cent. However, ASX200 slipped 0.33 per cent. 

 

In the US, the Dow Jones extended its losing streak to seven consecutive sessions, dropping 0.2 per cent, marking its longest decline since 2020. Meanwhile, the Nasdaq gained 0.12 per cent, and the S&P 500 closed nearly unchanged at 6,051.09.

 

Commodity check

  Oil prices surged nearly 2 per cent on Friday, reaching their highest levels in three weeks. The rally was fueled by expectations that potential new sanctions on Russia and Iran could limit supply, alongside optimism that anticipated interest rate cuts in Europe and the US might stimulate fuel demand. Brent crude settled at $74.49 per barrel, up 1.5 per cent.

 

Gold, meanwhile, declined after reaching a five-week peak earlier in the week. The drop came as the Dollar strengthened to its highest level in over two weeks, putting pressure on bullion prices. Spot gold fell 1.1 per cent to $2,652.29 per ounce.

 

Here's how analysts are assessing today's (December 16) trading session:

 

Rupak De, senior technical analyst at LKP Securities 

The trend is likely to remain strong, with the potential to reach 25,000 and higher in the short term. On the lower end, support is placed at 24,550.

 

Amol Athawale, VP of technical research at Kotak Securities 

For positional traders, the 50-day SMA at 24400/80200 and 24300/79900 would be the crucial support zones. As long as the market is trading above these levels, a bullish trend is likely to continue. On the higher side, the market could rally up to 25000/82000, with further upside potentially lifting the index to 25200/82600.