Markets Today: CPI, IIP data; US CPI; Nasdaq at 20K; Vishal Mega Mart IPO

Stock Markets Today, Dec 12: Investors will react to the US inflation rate, which accelerated for the second month in a row, marking the largest gain in seven months. This has also cemented Fed rate cut hopes. 

 

But the excitement isn't limited to the US markets. Back home, investors are awaiting India's November CPI, October IIP, and manufacturing data. These numbers will provide valuable insights into the state of the Indian economy and could have a major impact on the markets.

 

As the markets prepare to open, the mood is upbeat. At 6:34 AM, the GIFT Nifty futures are trading 28 points higher at 24,762 levels, hinting at a positive start.

 

 

In the previous session, the Sensex closed at 81,526.14, up 16.09 points or 0.02 per cent. The Nifty ended higher 0.13 per cent or 31.75 points higher at 24,641.80.

  Domestic cues

  India retail inflation likely fell to 5.53 per cent in November after breaching the central bank's 6 per cent upper tolerance band as the arrival of fresh produce to markets moderated soaring vegetable prices, a Reuters poll of economists found. READ MORE

 

Meanwhile, the Asian Development Bank (ADB) on Wednesday lowered its India growth forecast for the current financial year (FY25) to 6.5 per cent from 7 per cent earlier. READ MORE

 

Also Read: SIP account additions slip to 6-month low in November, shows Amfi data

 

IPO corner 

Inventurus Knowledge Solutions IPO (Mainline) and Yash Highvoltage IPO (SME) will open for subscription.

 

One Mobikwik Systems IPO (Mainline), Vishal Mega Mart IPO (subscribed 51 per cent on Day 1), Sai Life Sciences IPO (subscribed 66 per cent on Day 1), Purple United Sales Limited IPO (SME) and Supreme Facility Management IPO (SME) will enter Day 2 of their subscription.

 

Toss The Coin IPO (SME) and Jungle Camps IPO (SME) will see their last day of subscription, while Dhanlaxmi Crop Science IPO (SME) will see its allotment.

 

FII, DII  

Foreign Institutional Investors sold shares worth Rs 1,012.24 crore on December 11. Contrastingly, Domestic Institutional Investors bought equities worth Rs 2,007.85 crore.

 

Also Read: Stable govt, GDP growth to help India get FPIs: Barclays' Prez Dainton

 

Global markets 

  Asian markets opened higher on Wednesday, following a strong performance on Wall Street.  The tech-heavy Nasdaq surged to a record high, closing above the 20,000 level for the first time, after November's inflation report met expectations, fuelling hopes for an interest rate cut from the Federal Reserve.   The CPI has risen 2.7 per cent in November compared to the same period last year, up from 2.6 per cent in October. The increase has met market expectations, and investors are breathing a sigh of relief.

 

In Asia, traders assessed jobs data from Australia, which showed the country's unemployment rate dropping to 3.9 per cent in November, beating expectations. Last checked, ASX 200 was down marginally, while Nikkei gained 1.7 per cent. The Kospi index was  up 0.5 per cent, despite ongoing political turmoil.

 

In the US, the Nasdaq rose 1.77 per cent to an all-time high before settling at 20,034.89, while the S&P 500 gained 0.82 per cent. The Dow Jones, however, fell 0.22 per cent, despite gains from major companies like Nvidia and Tesla.

 

Investors are now awaiting the upcoming release of the Producer Price Index (PPI) report for November, coupled with jobless claims data for the week-ending December 7, which is expected today. 

Moreover, the European Central Bank (ECB) is set to cut its deposit rate by 25 basis points to 3 per cent. The decision is expected later today.

 

Commodity check 

Gold prices gained major traction on Wednesday, following the release of inflation data that met market expectations. As investors await the US Producer Price Index (PPI) data for further direction on monetary policy, spot gold climbed 1 per cent to $2,719.40 per ounce. US gold futures also rose 1.4 per cent to $2,756.4.

 

Oil prices surged too after the European Union agreed to impose additional sanctions that threaten Russian oil flows. Although a larger-than-expected build in US fuel stockpiles last week capped the gains, Brent crude futures still rose 1.84 per cent, to close at $73.52 a barrel. US WTI crude futures gained 2.48 per cent to settle at $70.29.

 

Here's how analysts are assessing today's (December 12) trading session:

 

Rupak De, senior technical analyst at LKP Securities 

The index has been sustaining above the short-term critical moving average, suggesting a positive trend. Despite this, momentum is lacking, and a strong upside move could occur once the Nifty decisively moves above 24,700. In that case, the Nifty might move towards 25,000. On the lower end, support is placed at 24,500.

 

Shrikant Chouhan, head of equity research at Kotak Securities 

On the upside, if the market breaks above 24,700/81700, it could rise to a range of 24,800-24,825/82000-82200. Conversely, a decline below 24,500/81000 might lead to increased selling pressure. Below the same, it could retest the levels of 24,400-24,350/80700-80500.