Global Market Cues

Global markets exhibited a mixed performance overnight, largely influenced by anticipation of the US Federal Reserve's policy decision.

• US Markets: On Tuesday, December 9, major US indices closed mixed. The Dow Jones Industrial Average fell 0.4%, and the S&P 500 dipped 0.1%, while the tech-heavy Nasdaq Composite edged up 0.1%. The small-cap Russell 2000, however, climbed 0.4% to a new record high. Investors are keenly awaiting the Federal Reserve's decision, with an 87% probability priced in for a 25 basis point rate cut. Stronger-than-expected October job openings data (JOLTS), showing 7.67 million openings against an expectation of 7.2 million, has introduced some caution regarding the pace of future rate cuts. The 10-year Treasury yield rose to nearly 4.19%. Crude oil (WTI) slipped almost 1% to $58.35 a barrel, while gold futures saw a 0.6% gain, trading at $4,240 an ounce.
• European Markets: European equities traded with a mixed bias on Tuesday, with some indices like Germany's DAX and France's CAC 40 experiencing slight declines, while the FTSE 100 showed modest gains. The overall sentiment remained reserved as market participants awaited clarity from the Federal Reserve.
• Asian Markets: Asian markets presented a mixed picture in early Wednesday trade as investors braced for the Fed's announcement. Japan's Nikkei 225 rose 0.82%, and the Topix gained 0.65%, with South Korea's Kospi adding 0.22%. Conversely, Hong Kong's Hang Seng futures edged down 0.2%, and China's Shanghai Composite fell 0.69% to 3883 points.

GIFT Nifty and Domestic Cues

The GIFT Nifty is indicating a negative start for the Indian equity markets on Wednesday.

• GIFT Nifty Status: As of early Wednesday morning (07:26 AM IST), the GIFT Nifty live price was recorded at 25,895.00. This suggests a cautious to mildly negative opening for the domestic indices, with some reports showing it trading around 25,907 to 25,909, indicating a potential downside compared to Nifty futures' previous close.
• Domestic Market Recap (December 9): Indian benchmark indices extended their losing streak for a second consecutive session on Tuesday, December 9. The Sensex closed down 436 points (0.51%) at 84,666.28, while the Nifty 50 declined 121 points (0.47%) to settle at 25,839.65. In contrast, broader markets showed resilience, with the BSE Midcap index rising 0.60% and the Smallcap index surging 1.27%, outperforming the benchmarks.
• FII/DII Activity: Foreign Institutional Investors (FIIs) remained net sellers on December 9, offloading equities worth ₹3,760.10 crore. Domestic Institutional Investors (DIIs), however, provided support by purchasing equities valued at ₹6,224.90 crore on the same day.
• Currency: The Indian Rupee strengthened modestly on Tuesday, closing at 89.8750 per US dollar, supported by exporter dollar sales and modest foreign inflows.

Key Stocks in Focus

Several stocks are expected to be in focus today due to recent corporate developments:

• Highway Infrastructure: The company secured a new contract worth ₹328.78 Crore from the National Highways Authority of India (NHAI) for toll collection.
• HG Infra Engineering: The company received an assessment order setting aside its GST show-cause notice for FY2022-23 with a NIL demand.
• JSW Energy: GQG partners are planning to offload approximately 1% stake in the company through a block deal worth ₹677 Crore. The company's board is also scheduled to meet on December 12 to consider raising funds.
• HUDCO: Its Bond Allotment Committee will meet on December 12 to approve the issuance and allotment of unsecured, taxable, redeemable, non-convertible, and non-cumulative debentures.
• GPT Infraprojects: Declared as the lowest bidder for a new contract worth ₹199.17 Crore from North Eastern Railway.
• InterGlobe Aviation (IndiGo): The Union Minister of Civil Aviation has ordered a 10% curtailment of IndiGo flights amidst nationwide disruptions.
• Swiggy: Shareholders approved raising up to ₹10,000 crore via a Qualified Institutional Placement (QIP), with a floor price of ₹390.51 per share.
• Zydus Lifesciences: Its UAE-based subsidiary, Zydus Lifesciences Global FZE, has inked a licensing agreement for a biosimilar in the US and Canada.
• Meesho: Shares of the company are set to debut on the stock exchange today at an issue price of ₹111 apiece.
• Anand Rathi's stock recommendations: Hindustan Copper and Hindustan Petroleum are highlighted as top stock picks.

Key Events to Watch Today

• US Federal Reserve's Policy Decision: The most significant event for global markets today is the outcome of the US Federal Reserve's policy meeting. While a 25 basis point rate cut is widely anticipated, the Fed's forward guidance and economic projections will be crucial for market direction.
• China Inflation Data: Investors will be monitoring key inflation data from China, which could influence Asian market sentiment.
• RBI Market Borrowing Auctions: Domestically, the RBI's market borrowing auctions will be observed.

TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update

Tags: Pre-Market Stock Market Nifty Sensex Market Update

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