Markets Today: S&P 500 & Nasdaq at record, FIIs, Property Share IPO listing

Stock Markets Today, Dec 9: Geopolitical tensions, the Reserve Bank of India's (RBI) recent monetary policy decision, and strength in US markets are expected to influence the performance of Nifty and Sensex today. Last checked, GIFT Nifty was trading slightly higher (2 points) at 24,726 levels.

 

In the previous trading session, the benchmark indices ended their five-day winning streak in response to the RBI Monetary Policy Committee's decision to maintain the repo rate at 6.5 per cent. The committee, led by Governor Shaktikanta Das, also revised the economic growth forecast for FY25 down to 6.6 per cent from 7.2 per cent and reduced the cash reserve ratio (CRR), easing monetary conditions amid signs of slowing growth. READ MORE

 

 

The Sensex slipped slightly, closing 56.74 points or 0.07 per cent lower at 81,709.12. Meanwhile, the Nifty50 edged up 30.60 points or 0.12 per cent to close at 24,677.80.

 

Domestic cues

  The finance ministry is reportedly considering halting the issuance of Sovereign Gold Bonds (SGBs) starting from the next financial year (2025-26) as part of efforts to curb government debt. READ MORE

 

Also Read: Indian equity market has more room to correct: Manishi Raychaudhuri

 

IPO corner 

In the primary market activity, Property Share Investment Trust (Mainline) will debut on the bourses today, while the IPO of Dhanlaxmi Crop Science (SME) opens for subscription.  Also Read: FPI Leviathan Rises: Primary markets unleash kraken of investment in 2024   Meanwhile, Emerald Tyre Manufacturers IPO (SME) will see its last day of subscription, and allotment for Nisus Finance Services Co IPO (SME) is expected to be finalised.

 

Also Read: IPO frenzy: 5 main-board, 6 SMEs to hit market to raise Rs 18,500 cr

 

FII, DII 

On the institutional front, Foreign Institutional Investors (FIIs) offloaded shares worth Rs 1,830.31 crore on December 6. In contrast, Domestic Institutional Investors (DIIs) made purchases worth Rs 1,659.06 crore.

 

Also Read: FPIs return to Indian equities with Rs 24,454 cr inflow in Dec first week  

Global cues 

Globally, Asia-Pacific markets opened with mixed performances. Japan's Nikkei rose 0.15 per cent, buoyed by revised GDP growth figures, which showed third-quarter expansion at 0.3 per cent, exceeding expectations. On the other hand, China’s annual inflation rate dropped to 0.2 per cent in November 2024, down from 0.3 per cent in October. The figure fell short of market expectations of 0.5 per cent and represents the lowest rate since June.  

Meanwhile, South Korea faced a decline, with the Kospi dropping 1.4 per cent and the Kosdaq falling 2.9 per cent, as political uncertainty continues to unsettle the region. South Korean President Yoon Suk Yeol survived an impeachment vote, though political tensions persist. Australia's ASX 200 slipped 0.27 per cent.

 

In addition to these developments, political instability in France and South Korea has been compounded by the reported collapse of the Syrian regime, adding to the geopolitical complexities in the Middle East.

 

In the US, markets closed with mixed results on Friday. The S&P 500 and Nasdaq Composite hit fresh highs, supported by better-than-expected November jobs data, which bolstered hopes for another Federal Reserve rate cut later this month. 

 

The S&P 500 edged up 0.25 per cent to 6,090.27, and the Nasdaq gained 0.81 per cent to 19,859.77, driven by strong performances from Tesla, Meta Platforms, and Amazon. However, the Dow Jones dipped 0.28 per cent. 

 

Commodity check 

Gold prices saw a modest rise of 0.4 per cent, reaching $2,643 per ounce, driven by ongoing geopolitical uncertainty. However, the metal is encountering resistance at $2,666, tempering further gains.

 

Oil markets found some support amid tensions in the Middle East, though concerns over subdued demand, especially from China, continue to weigh on sentiment. Brent crude inched up 9 cents to $71.21 per barrel, while US crude climbed 12 cents, settling at $67.32 per barrel.

 

Here's how analysts are assessing today's (December 9) trading session:

 

Rupak De, senior technical analyst at LKP Securities 

The Nifty continues to sustain above the breakout from an inverse head-and-shoulders pattern, indicating underlying market strength. In such conditions, adopting a buy-on-dips strategy seems prudent, especially with the potential for an upward move toward 25,500 in the short-term. However, minor pullbacks following a sharp rally are possible, further emphasising the effectiveness of buying on dips to capitalise on this trend.

 

Amol Athawale, VP of technical research at Kotak Securities 

The ideal strategy for short-term traders would be to buy on dips and sell on rallies. For traders  key support levels would be 24,500/81,200 and 24,300/80,700, while resistance is expected to be between 24,900/82,200 and 25,050/82,500. However, below 24,300/80,700, traders may prefer to exit out from the trading long positions.