Market Ahead, December 14: Top factors that could guide markets this week

The Indian markets continued to hit fresh record highs in the week gone by on the back of positive global cues. Benchmark indices hit new landmarks, with the BSE Sensex crossing 46,000 for the first time, while the Nifty ended at 13,514.

Going ahead, vaccine approvals, foreign fund flow, macro data, and global cues will remain the driving forces for the markets this week. Besides, IPOs and stock-specific developments will also impact sentiment.

While the trend in global markets will be guided by developments in Brexit deal talks, US Fed interest rate decision, and updates on the expected US stimulus package, domestic markets will be waiting for major data points like inflation and import-export updates. The WPI and CPI inflation data are scheduled to be announced today. 

The Federal Reserve heads into its meeting on December 15 and 16. The market is assuming the central bank will merely refine its forward guidance on policy rather than buying more bonds.

Back home, India's total coronavirus cases mounted to 98.84 lakh with death toll rising to 1.43 lakh, according to Worldometer. The country's total Covid-19 active caseload has dropped to below 3.6 lakh, and comprises just 3.66 per cent of the total coronavirus infections.

Apart from these, Brent crude oil movement, foreign fund flow and the Rupee's trajectory would also be watched by investors.

Foreign investors have bought Rs 33,383 crore worth of shares in December till now. Analysts believe that given the persistent dovish tone of global central bankers, improved prospects of sound earnings growth and weak dollar index, FPI flow should remain benign in subsequent period for domestic markets.

And now, let's take a look at the trade setup for today

Asian stocks started a busy week with guarded gains as investors gauged the chance of added US fiscal and monetary stimulus, while a last-gasp extension to Brexit talks dodged a hard divorce.

Progress on coronavirus vaccines cheered risk sentiment, as the historic mission to vaccinate more than 100 million people in the United States began today.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 per cent. Japan’s Nikkei added 0.4 per cent and Australia's ASX 200 rose half a per cent.

In commodities, oil prices edged higher on Monday, with Brent crude futures rising 12 cents to $50.09 per barrel.

On the back of such favourable cues, the SGX Nifty was trading 45 points up at 13,580 levels, at 7:30 AM, indicating yet another record-breaking opening for the Indian markets today.

Besides, India’s industrial activity touched an eight-month high in October, which might also help investor sentiment. The Index of Industrial Production grew by 3.6 per cent in October on a year-on-year basis, led by significant expansion in consumer goods, electricity, and infrastructure goods..

Burger King India's Rs 810 crore IPO will debut at the bourses today. The quick-service restaurant chain is expected to have a strong debut as its IPO had received an overwhelming response from investors, with the public offer being subscribed 156.65 times. 

Going ahead, the IPO of Mrs Bectors Food Specialties will open for subscription on Tuesday, with the price band fixed at Rs 286-288 per share. The bakery products maker plans to raise Rs 541 crore from the IPO.