Positive global cues may push domestic shares higher

Market is seen extending recent gains, tracking positive leads from Asian markets and overnight gains on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 48 points at the opening bell.

India's industrial production (base year 2011-12=100) surged at 11-month high pace of 8.1% in October 2018, compared with 4.5% growth recorded in September 2018. The industrial production growth for September 2018 has been retained unchanged from 4.5% increase reported provisionally.

The all-India general CPI inflation dipped to 17-month low of 2.33% in November 2018 (new base 2012=100), compared with 3.38% in October 2018. The core CPI inflation eased to 5.71% in November 2018 compared with 6.20% in October 2018.

Overseas, Asian shares moved higher on Thursday, building on the momentum seen on Wall Street overnight, as China appeared to be taking more steps to meet US demands to open its markets.

According to media reports, Beijing is working to increase access to foreign companies, a move aimed at smoothing US-China trade relations. The plan would replace the country's Made in China 2025 initiative, reports said. Made in China 2025 is a framework aimed at making China a leader in industries like clean-energy cars and robotics.

US stocks came off session highs but still closed higher Wednesday after a series of developments boosted expectations that a US-China trade deal could be reached in the coming months.

On the data front, the consumer-price index, a key measure of inflation, showed no price growth between October and November, the Labor Department announced Wednesday. Core prices, which eliminate volatile food and energy costs, rose 0.2% month-over-month.

Meanwhile in Europe, UK Prime Minister Theresa May won a crucial vote of confidence in her leadership on Wednesday evening. May won the leadership challenge by 200 votes to 117 votes against her in the ballot of Conservative members of parliament (MPs). May needed a simple majority (at least 159 out of 315 Conservative MPs) to win the confidence vote. Winning this vote means her leadership cannot be challenged for another year now.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1299.43 crore on 12 December 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1121.29 crore on 12 December 2018, as per provisional data.

Domestic stocks rallied for the second consecutive session yesterday, 12 December 2018, on broad-based buying demand in index pivotals. The swift appointment of the former economic affairs secretary Shaktikanta Das as the new Reserve Bank of India governor boosted sentiment. In addition, investors took fresh position in shares after the outcome of Assembly election results. Positive news about fresh talks for a US-China trade deal also infused optimism in markets. The barometer index, the S&P BSE Sensex, gained 629.06 points or 1.79% to settle at 35779.07. The Nifty 50 index rose 188.45 points or 1.79% to settle at 10,737.60.

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