Markets today: Fed outcome; Sebi Board meet; MobiKwik, Vishal Mega listing

Stock Market Today: Indian markets took a sharp hit in the previous session as foreign portfolio investors (FPIs) turned wary ahead of the Fed's policy outcome

Stock Markets Today, December 18: Key benchmark indices – Sensex and Nifty – may open cautiously as investors await the US Federal Reserve’s interest rate decision. Early signs from GIFT Nifty Futures, trading 54 points lower at 24,364 this morning, reflect the nervous sentiment.

 

Indian markets took a sharp hit in the previous session as foreign portfolio investors (FPIs) turned wary ahead of the Fed’s policy outcome. FIIs and FPIs sold Indian equities worth Rs 6,409.86 crore on Tuesday, December 17, 2024. By comparison, DIIs bought equities worth Rs 2,706.48 crore.   The heavy selling pressure spilled over into the currency markets, dragging the rupee to an intraday low of 84.93 against the dollar. The Reserve Bank of India eventually stepped in to stabilise the situation. 

 

Also Read: Q2 growth a temporary blip, economy to see better growth: FM Sitharaman

 

Domestic cues

  The Securities and Exchange Board of India (Sebi) is set to hold a board meeting today, where it is expected to tighten regulations for small and medium enterprises (SMEs) IPOs and expand the definition of unpublished price-sensitive information (UPSI). 

Also, Sebi has introduced major changes in the norms governing investment advisors and research analysts (RAs), relaxing requirements on minimum qualification, experience, mandatory examination to be passed periodically, and net worth requirements. READ MORE

 

Also Read: Amfi stock reclassification: Largecap cutoff likely to touch Rs 1 trn

 

FII, DII  

Foreign Institutional Investors (FIIs) sold shares worth Rs 6,409.86 crore on December 17, while domestic institutional investors (DIIs) stepped in to buy equities worth Rs 2,706.48 crore.

 

Also Read: Sebi mandates granular disclosures for ODIs, restricts derivatives

 

IPO corner 

One Mobikwik Systems IPO (Mainline), Vishal Mega Mart IPO (Mainline), Sai Life IPO (Mainline), Purple United IPO (SME) and Supreme Facility IPO (SME) will list on the bourses.

 

Identical Brains IPO (SME) will open for subscription, while NACDAC Infrastructure IPO (SME) will enter Day 2 of its subscription.

 

Additionally, International Gemmological IPO (Mainline) and Hamps Bio IPO (SME) will see their allotment of shares.

 

Also Read: Mkt regulator Sebi proposes platform to track unclaimed MF folios

 

Global cues 

Asia-Pacific markets opened on a mixed note on Wednesday, tracking Wall Street's decline, where the Dow Jones recorded its ninth consecutive day of losses. 

 

Nikkei was down 0.5 per cent, while the broader Topix index gained marginally. Kospi gained 0.7 per cent, and ASX 200 rose 0.3 per cent.

 

Investors in Asia are closely watching Japan’s trade data, set to be released later today, ahead of the Bank of Japan’s (BOJ) rate decision this week. Economists expect Japan’s exports to have risen 2.8 per cent year-over-year in November, with imports anticipated to have increased by 1 per cent. Meanwhile, attention is also on the People’s Bank of China (PBOC), which will announce its loan prime rates on Friday. These rates influence corporate and household loans, as well as mortgage benchmarks in China.

 

On Wall Street, the Dow made history with its first nine-day losing streak since 1978, falling 267.58 points, or 0.61 per cent, to close at 43,449.90. The S&P 500 dropped 0.39 per cent to end at 6,050.61, while the Nasdaq shed 0.32 per cent to finish at 20,109.06.

 

Commodity check 

Oil prices declined on Tuesday as weak economic data from China reignited concerns about global demand, while caution prevailed among investors ahead of the US Fed interest rate decision. Brent crude futures dropped 0.97 per cent to settle at $73.19 a barrel. Similarly, US WTI crude fell 0.89 per cent to close at $70.08 a barrel.

 

Gold also edged lower, pressured by a stronger US dollar and rising Treasury yields, as markets anticipated the Fed’s final policy meeting of the year. Spot gold slipped 0.3 per cent to $2,644.84 per ounce, while US gold futures declined by the same margin to settle at $2,661.

  Meanwhile, Bitcoin reached an all-time high for a second consecutive day, with traders eyeing the $110,000 price level.   

Here's how analysts are assessing today's (December 18) trading session:

 

Hrishikesh Yedve, AVP of technical & derivatives research at Asit C Mehta Investment

 

The index has formed a big red candle on a daily chart, and has broken the 100-DEMA support around the 24,360 levels, indicating weakness. However, Nifty is still consolidating in the band of 24,180 - 24,860, either side's breakout will decide the index's future move. In the immediate term, 24,180 will serve as significant support levels. If the index sustains below 24,180, then weakness could extend towards 24,000-23,900 levels.

 

Rupak De, senior technical analyst at LKP Securities

 

The short-term outlook remains weak, with the potential for a decline towards 24,200, where an initial round of support is expected. A meaningful recovery might be seen if Nifty does not break decisively below 24,200.