Markets Today: US GDP; China LPR; FIIs; Senores & Carraro IPOs; IGI listing

Stock Markets Today, December 20: The Indian benchmark indices, Nifty50 and Sensex are likely to start on a cautious note on the final trading session of the week as mixed global cues weigh on investor sentiment. 

 

Early indicators pointed to a subdued start, with GIFT Nifty Futures trading 84 points lower at 23,934 at 6:55 AM. This follows a sharp sell-off in the previous session, where the Sensex plunged 964.15 points, or 1.20 per cent, to close at 79,218.05, and the Nifty50 slipped 247.15 points, or 1.02 per cent, to 23,951.70.

 

Also Read: Rising pressure on rupee clouds RBI's February rate cut prospects

 

Amid this backdrop, domestic developments also demand attention. In a major move, the Securities and Exchange Board of India (Sebi) introduced a new regulatory framework aimed at ensuring transparency in the investment advisory space. The initiative, called the “Past Risk and Return Verification Agency” (PaRRVA), is set to verify the claims of returns and risk metrics made by investment advisors, research analysts, algorithmic trading platforms, and similar entities. 

 

Also Read: Sebi targets NFO mis-selling with new rule to prevent portfolio churn

 

Meanwhile, in another regulatory update, Sebi decided to extend the deadline for listed companies’ value chain partners to comply with the Business Responsibility and Sustainability Reporting (BRSR) requirements. 

 

Other triggers

 

FII, DII 

FIIs continued to offload Indian equities, selling shares worth Rs 4,224.92 crore on December 19. Contrastingly, DIIs bought equities worth Rs 3,943.24 crore.

 

Also Read: Narrowing of US, Indian 10-year treasury yields to impact FPI inflows

 

IPO market 

International Gemmological IPO (Mainline) will make its debut on the D-Street. Ventive Hospitality IPO (Mainline), Senores Pharmaceuticals IPO (Mainline), and Carraro India IPO (Mainline) will open for subscription. 

 

Also Read: 3 out of 5 IPOs fully booked on Day 1; IKS Health surges 48 per cent on debut

 

Concord Enviro IPO, Sanathan Textiles IPO, Mamata Machinery IPO, DAM Capital IPO, and Transrail Lighting IPO – all mainline IPOs – will enter Day 2 of their subscription. 

 

In the SME IPO corner, Hamps Bio IPO will list on the bourses, while Newmalayalam Steel IPO enter Day 2, and Identical Brains IPO will enter its final day of subscription.

 

Global cues 

Asia-Pacific markets were mixed on Friday as investors processed Japan's inflation data and China's interest rate decision. The People’s Bank of China held its benchmark lending rates steady, with the one-year loan prime rate at 3.1 per cent and the five-year LPR at 3.6 per cent, affecting corporate, household, and mortgage loans.

 

In Japan, inflation data released for November showed a core inflation rate of 2.7 per cent, slightly above the 2.6 per cent forecasted by economists polled by Reuters. Headline inflation hit 2.9 per cent, a rise from 2.3 per cent in October. 

 

Thus, Nikkei and Topix edged up 0.1 per cent each. This came a day after the Bank of Japan maintained its interest rate at 0.25 per cent. Elsewhere, Kospi fell 0.7per cent, while ASX200 was down 1.1 per cent.

 

In the US, the economy showed stronger-than-expected growth in the third quarter, driven by resilient consumer spending. The data showed an annualised GDP growth rate of 3.1 per cent, revised upward from the earlier estimate of 2.8 per cent. Despite this positive economic data, US markets presented a mixed picture. The Dow Jones narrowly ended its longest losing streak since 1974, inching up by 0.04 per cent. Meanwhile, the S&P 500 dipped 0.09 per cent, and the Nasdaq Composite slid 0.10 per cent.

 

Commodity check 

Oil prices declined on Thursday as cautious signals from central bankers across the US, Europe, and Asia heightened concerns about subdued economic activity potentially weakening oil demand in the coming year. Brent crude futures dropped 0.69 per cent to $72.88 per barrel, while US WTI crude fell 0.95 per cent to $69.91 per barrel.

 

Gold prices saw a slight increase, reversing earlier gains after US economic data reinforced expectations that the Federal Reserve would proceed cautiously with monetary policy adjustments in the coming year. Spot gold rose 0.2 per cent to $2,592.39 per ounce, while US gold futures slipped 1.7 per cent to $2,607.50.

 

Here's how analysts are assessing today's (December 20) trading session:

 

Rupak De, senior technical analyst at LKP Securities 

Sentiment remains weak following a hawkish comment from the Fed, which could continue to weigh on market sentiment in the short-term. Support is placed at 23,850, below which further correction appears likely. Resistance is seen at 24,200.

 

Shrikant Chouhan, head of equity research at Kotak Securities 

The key support zones are at 23,870/79,000 and the 200-day SMA or 23,825/78,800. If the index remains above these levels, we could see a quick pullback rally towards 24,150-24,200/79,500-79,800. Conversely, if it falls below the 200-day SMA or 23,825/78,800, below which it could slip till 23,750-23,725/78,500-78,350.