Indices may open higher

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 41 points at the opening bell.

The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of October 2019 stands at 127.7, which is 3.8% lower as compared to October 2018.

IIP dropped 4.3% year-on-year in September 2019, following an upwardly revised 1.4% decline in August.

India's retail inflation in November 2019 rose to 5.54% from 4.62% in October 2019. The figure was at 2.33% in November 2018.

Overseas, Asian markets jumped on Friday on the emergence of a possible US-China trade deal. Also political risks appeared to abate, with the ruling Conservative party on course to win the UK's general election.

In US, stocks surged to new records on Thursday propelled by reports the US and China had reached at trade deal to avoid new tariffs due on Sunday, and roll back existing levies, in exchange for purchases of American agricultural products.

The benchmark S&P 500 and Nasdaq Composite indexes closed at record highs while the Dow Jones Industrial Average saw a new intraday record.

In US economic data, new unemployment claims jumped by 49,000 to 252,000 during the week ended 7 December 2019 the highest level since September 2017, though the data was likely affected by the US Thanksgiving holiday. Wholesale price inflation remained tame, with the producer-price index unchanged in November, with core producer prices, which strips out volatile energy and food prices, falling to a three-year low of 1.3%.

European Central Bank decided to keep its main deposit rate at negative 0.5%.

Back home, market ended with strong gains on Thursday, after multiple announcements by the Union Cabinet on Wednesday lifted investor sentiment. The barometer index, the BSE Sensex, rose 169.14 points or 0.42% to 40,581.71. The Nifty 50 index rose 61.65 points or 0.52% to 11,971.80.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 683.83 crore yesterday, 12 December 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 810.23 crore, yesterday, 12 December 2019, as per provisional data.

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