Stocks may open near flat line

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 5 point at the opening bell.

Overseas, most Asian markets were trading higher on Friday after Wall Street posted more record highs.

In US, all three benchmark stock indexes scored record highs again on Thursday, unfazed by President Donald Trump's impeachment, while finding ongoing support from the US-China trade deal, the passage of the United States-Mexico-Canada Agreement (USMCA) trade deal to replace North American Free Trade Agreement (NAFTA) by the House, and improving economic data.

The Chinese Ministry of Commerce reportedly said on Thursday that it remains in contact with the US as the text of the deal is drafted. US Treasury Secretary Steven Mnuchin reportedly said the deal will be signed in early January.

 

Compared to NAFTA, the new treaty aims to help US farmers, ranchers, manufacturers, workers and consumers by opening new markets to American goods and reducing the cost of household staples such as drugs and groceries.

On economic front, new applications for US jobless benefits fell during the week ended 14 December 2019, dipping 18,000 to a seasonally adjusted 234,000 after surging to 252,000, a two-year high, the week before.

Back home, key equity benchmarks extended record run for third day in a row on Thursday on reports that China has exempted tariff on additional US products. The barometer index, the BSE Sensex, rose 115.35 points or 0.28% to 41,673.92, its record closing high. The Nifty 50 index jumped 38.05 points or 0.31% to 12,259.70, its record closing high.

The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 739.43 crore yesterday, 19 December 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 493.95 crore, yesterday, 19 December 2019, as per provisional data.

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