Market Ahead, Dec 31: Top factors that could guide markets today

US stocks closed higher overnight with the Dow Industrials nudging up to a record, as investors looked towards an improving economic outlook in 2021 on the back of COVID-19 vaccine rollouts and hopes for even more fiscal support.

However, near-term expectations of bigger stimulus checks dimmed after US Senate Majority Leader Mitch McConnell blocked a quick vote to back President Donald Trump’s call to increase COVID-19 relief checks to $2,000 from $600 already signed into law.

The Dow Industrial rose 0.24%, the S&P 500 0.13% and the Nasdaq Composite added 0.15%.

Asian markets were trading mixed with MSCI’s gauge of Asia-Pacific shares excluding Japan hovering near record high levels while Australian shares were down 0.23%. Japanese markets were shut on Thursday. The cryptocurreny bitcoin, meanwhile, extended its record-breaking rally to surpass $29,000 level.

Amid this setup, Nifty futures of SGX were trading 0.08% higher at 13,993, indicating a flat-to-positive start for Indian markets. The session could be marked by high volatility on account of December F&O expiry today.

In development on the vaccine front, Subject Expert Committee in the CDSCO considered applications from key players like Serum Institute of India and Bharat Biotech for emergency use authorisation yesterday. However, the panel decided to meet again on January 1 for further analysis of the additional information supplied by the two companies.

That apart, India's current account surplus moderated to $15.5 billion or 2.4 per cent of the GDP in the July-September quarter of the current fiscal, the RBI said on Wednesday. The same was at $19.2 billion or 3.8 per cent of the GDP in the preceding three-month period.

Now, a look at the stock-specific developments that are likely to sway the market today:

Vedanta promoters cannot sell or create any security on shares they hold in the group as part of the terms attached to the recent USD 1.4 billion fund raising -- conditions which technically fall within the definition of 'encumbrance' but no pledge on shares has been created, the company said on Wednesday.

RITES Ltd said it has declared an interim dividend of Rs 5 per share on face value of Rs 10 each.

Adani Green Energy on Wednesday said it has commissioned a 100 megawatt (MW) solar power project at Khirsara in Gujarat.