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Market Ahead, December 12: All you need to know before the Opening Bell

Market participants will watch out for industrial production data for the month of October and CPI inflation for November which will be released later in the day

BS Web Team  |  New Delhi 

Global cues and macro numbers will remain the top two factors that will impact the investor sentiment today.

On the domestic front, market participants will watch out for industrial production data for the month of October and CPI inflation for November which will be released later in the day.

Another key event today will be the listing of Ujjivan Small Finance Bank, which recently concluded its Rs 750-crore IPO. The IPO, which was open for subscription from December 2 to 4, was subscribed more than 165 times at a price band of Rs 36-37 per share.

Also, the Union Cabinet on Wednesday approved a partial credit guarantee scheme for NBFCs and housing finance companies. This will allow public sector banks to buy pooled assets from financially sound entities.

On the global front, the US Federal Reserve on Wednesday held interest rates steady and signaled that borrowing costs will not change anytime soon, with moderate economic growth and historically low unemployment expected to persist through the 2020 presidential election. The policy decision left the Fed’s benchmark overnight lending rate in its current target range between 1.5 per cent and 1.75 per cent.

Apart from this, voting in key UK elections that will determine Britain's relationship with the European Union will be held later in the day. Investors will keenly follow the developments on that front while also waiting for any updates on the US-China trade talks front as the December 15 deadline for the latest tariffs loom.

These apart, the rupee's movement against the US dollar, stock-specific action, foreign fund flow, and the oil price movement will also impact investors' risk-taking appetite.

Globally, Wall Street’s main stock indexes ended modestly higher on Wednesday after the US Fed signaled rate settings were likely to remain accommodative. The Dow Jones Industrial Average rose 0.11 per cent, the S&P 500 gained 0.3 per cent, and the Nasdaq Composite added 0.44 per cent.

Asian stocks edged higher on Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent, Japan's Nikkei stock index climbed 0.11 per cent, and Australian shares were down 0.3 per cent. The SGX Nifty signalled a positive start to the day for the domestic indices.

In commodities, oil prices steadied on Thursday and Brent futures rose 19 cents to $63.61 a barrel

Back home, buying in the last hour of Wednesday's trading session helped equity benchmarks close with gains. The BSE Sensex closed 173 points higher at 40,413, while the Nifty index settled at 11,910, up 53 points. Going ahead, analysts say the may see some volatility with many crucial global and domestic events lined up. Hence, traders should hedge their trades rather than continue naked trades.

In the end, here's a trading idea for you by Tradebulls Securities which recommends buying TCS on declineswith stop-loss below Rs 1,930 on the weekly closing basis.

First Published: Thu, December 12 2019. 07:02 IST
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