Markets today: Inflation at 5.48%; Nov WPI; Wall St falls; Gemmological IPO

Stock Markets Today, Dec 13: Weak global cues led by the lower close on Wall Street, GIFT Nifty levels may influence Indian benchmarks, Nifty and Sensex, today. However, better-than-expected inflation figures may generate some cushioning effects for the markets.

 

At 7:25 AM, GIFT Nifty futures were trading 105 points lower at 24,543 levels, hinting at a gap-down start. 

 

Meanwhile, weaker-than-expected Q2 GDP data had left investors on edge while fanning calls from some quarters for a rate cut by the RBI MPC at its bimonthly meeting last week. But lower November inflation figures have brought a much-needed sigh of relief, while boosting prospects of a rate cut announcement by the central bank at its next policy meeting in February. 

 

India’s retail inflation rate eased to 5.48 per cent in November, which marked a sharp drop from October's 14-month high of 6.21 per cent, driven by a slowdown in food prices and a favourable high base effect. 

 

Importantly, the inflation figure slipped back within the Reserve Bank of India’s (RBI’s) tolerance band, sparking optimism for a potential policy rate cut in the upcoming February review.

 

Amid this positive development, industrial production also showed signs of revival. The index of industrial production (IIP) posted a growth of 3.5 per cent in October, edging up from September's 3.1 per cent. 

 

Domestic cues 

Investors now await the country’s wholesale inflation figures for November later in the day. Economists polled by Reuters expect India’s wholesale inflation rate to come down to 2.2 per cent from October’s 2.36 per cent.

 

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Meanwhile, manufacturing companies earned less money from their core business in the September 2024 quarter than in the same period last year. 

 

The Securities and Exchange Board of India (Sebi) is likely to tighten rules around small and medium enterprises (SMEs) initial public offerings (IPOs) and widen the definition of unpublished price-sensitive information (UPSI). READ MORE

 

Also Read: Irdai may limit insurance companies' overdependence on parent banks

 

Notably, India’s outward foreign direct investment (FDI) commitments almost halved to $2.28 billion in November 2024, from $4.17 billion in November 2023.

 

IPO corner 

International Gemmological Institute (India) IPO (Mainline) and Hamps Bio Limited IPO (SME) will open for subscription today.

 

Inventurus Knowledge Solutions IPO (Mainline) (subscribed 1.36x) and Yash Highvoltage IPO (SME) will enter Day 2 of their subscription.

 

One Mobikwik Systems IPO (subscribed 20.41x on Day 2), Vishal Mega Mart IPO (subscribed 1.54x on Day 2), Sai Life Sciences IPO (subscribed 1.25x on Day 2), Purple United Sales Limited IPO (SME) and Supreme Facility Management IPO (SME) will enter final day of their subscription.

 

Toss The Coin IPO (SME) and Jungle Camps IPO (SME) will see their allotment today.

 

FII, DII 

  FIIs sold shares worth Rs 3,560.01 crore on December 12. Contrastingly, DIIs bought equities worth Rs 2,646.65 crore.

 

Global cues 

Asia-Pacific markets declined on Friday, echoing Wall Street’s losses after a hotter-than-expected US producer price inflation report. The PPI, which tracks wholesale inflation, rose 0.4 per cent in November, surpassing the Dow Jones estimate of 0.2 per cent. 

 

In Asia, investors weighed China’s stimulus pledges, following Beijing’s reaffirmation of policy shifts and commitment to boosting growth during a high-profile meeting on Thursday.

 

Attention also turned to Japan, where the Bank of Japan's Tankan survey revealed greater optimism among large manufacturers. The Tankan index for large manufacturing firms rose to 14 in the December quarter, up from 13 in September and beating the Reuters poll forecast of 12.

 

Nikkei dropped 0.717 per cent, while the Topix index fell 0.78 per cent. Kospi declined 0.27 per cent and ASX200 was down 0.6 per cent.

 

On Wall Street, all three major indexes closed lower overnight. The Dow Jones lost 0.53 per cent, marking its sixth consecutive losing session. The Nasdaq shed 0.66 per cent, slipping below 20,000-mark, while the S&P 500 declined 0.54 per cent.

 

Commodity check

 

Gold slipped over 1 per cent on Thursday as investors booked profits following a brief climb to a five-week high earlier in the session. Traders also squared positions ahead of next week’s US Fed meeting. Though, on Friday, Spot Gold edged up 0.21 per cent to $2,686.73.

 

Oil prices dipped slightly on Thursday, with forecasts of ample supply outweighing optimism fueled by rising expectations of a rate cut. Brent crude futures dropped 11 cents to $73.41 per barrel, while US WTI crude fell 27 cents to settle at $70.02 per barrel.

 

Here's how analysts are assessing today's (December 13) trading session:

 

Rupak De, senior technical analyst at LKP Securities 

The sideways consolidation in Nifty may persist for a few more days as the index remains within a defined range. A decisive fall below 24,470 could trigger a meaningful correction in the market. On the higher side, resistance is seen at 24,650-24,700.

 

Shrikant Chouhan, head of equity research at Kotak Securities 

We are of the view that the intraday market texture is weak, but fresh sell-off is possible only after a dismissal of 24,500/81000 below which level; the market could slip to 25,350-25,300/80500-80300. On the other side, above 24,620/81500, the sentiment could change. Above that level, the market could bounce back up to 24,700/81800. Further upside may also continue, which could lift the index up to 24,775/82000.